Alphabet’s Google (GOOGL.O) is set to invest up to $2 billion in the artificial intelligence company Anthropic, according to a spokesperson for the startup on Friday.
Google’s initial investment amounts to $500 million, with an additional commitment of $1.5 billion over time.
This move underscores Google’s intent to strengthen its position in the competitive AI landscape, particularly in the face of major players like Microsoft (MSFT.O), a key supporter of OpenAI, the creator of ChatGPT. Google is already an existing investor in Anthropic.
Amazon.com (AMZN.O) also announced last month its plan to invest up to $4 billion in Anthropic to stay competitive in the AI space against other cloud rivals.
In its quarterly report to the U.S. Securities and Exchange Commission this week, Amazon disclosed an investment of $1.25 billion in a note from Anthropic, convertible to equity.
The company has the option to invest up to $2.75 billion in a second note by the first quarter of 2024.
The increasing investments highlight the ongoing efforts of cloud companies to establish partnerships with AI startups reshaping the industry. Anthropic, co-founded by former OpenAI executives Dario and Daniela Amodei, is actively seeking resources and robust backers to compete with OpenAI and emerge as a leader in the technology sector.
Both Google and Amazon declined to comment on the recent developments.
