Google invests up to $2 billion in OpenAI competitor Anthropic

A spokesman for Alphabet's Google said on Friday that the company Anthropic, which specializes in artificial intelligence, would receive up to $2 billion in funding.

Anthropic is an artificial intelligence firm, and Alphabet's Google has committed to investing up to $2 billion in it, according to a spokeswoman on Friday.

According to the spokeswoman, the business has committed to investing an additional $1.5 billion over time, having already invested $500 million in the OpenAI rival.

As big tech companies scramble to incorporate AI into their products, Google, a current investor in Anthropic, will be stepping up its efforts to better compete with Microsoft, a key sponsor of OpenAI, the company that created ChatGPT.

In order to compete with its expanding cloud rivals in AI, Amazon.com also announced last month that it would invest up to $4 billion in Anthropic.

The online retailer revealed that it has invested in a $1.25 billion note from Anthropic, which can be converted to equity, in its most recent quarterly filing to the U.S. Securities and Exchange Commission this week. The company's capacity to make investments of up to $2.75 billion in an additional note expires in the first quarter of 2024.

The increasing volume of investments demonstrates the continued scheming by cloud providers to establish connections with AI firms that are revolutionizing their sector.

Siblings Dario and Daniela Amodei co-founded Anthropic, and the company has demonstrated efforts to raise the capital and acquire the deep pockets required to take on OpenAI and establish itself as a leader in the technology industry.