A PYMNTS Company

Google Commits Up to $2 Billion Investment in OpenAI Competitor Anthropic

 |  October 29, 2023

Alphabet’s tech giant Google has confirmed its commitment to invest up to $2 billion in Anthropic, an artificial intelligence company seeking to rival OpenAI. A spokesperson for Anthropic announced this significant investment on Friday.

Google has initiated this financial backing with an initial investment of $500 million in Anthropic, with an agreement in place to inject an additional $1.5 billion over a period of time. This strategic investment signifies Google’s dedication to bolstering its position in the competitive landscape of AI, as it seeks to match the efforts of Microsoft, a key supporter of OpenAI. These major players in the technology industry are racing to integrate AI into their diverse applications, reported Reuters. 

Read more: Google And OpenAI Disagree On Government Oversight Of AI

Amazon has also made headlines in this context, having announced last month its intention to invest up to $4 billion in Anthropic. As part of their financial commitment, Amazon disclosed in its quarterly report to the U.S. Securities and Exchange Commission that they have invested in a $1.25 billion note issued by Anthropic, which has the potential to convert into equity. Furthermore, Amazon has the option to invest up to $2.75 billion in a second note, with this option expiring in the first quarter of 2024.

The escalating investments in Anthropic underscore the ongoing maneuvering and competition among leading tech companies as they strive to establish strong affiliations with AI startups that are reshaping the technology industry.

Anthropic, co-founded by former OpenAI executives Dario and Daniela Amodei, is currently working to secure the necessary resources and backing from deep-pocketed investors to assert itself as a player in the tech sector, directly competing with OpenAI.

Source: Reuters