Google has invested around $300 million in artificial intelligence start-up Anthropic, making it the latest tech giant to invest in the field of generative AI. The investment involves Google taking a 10% stake in the start-up and providing computing resources from its cloud computing division.
The move highlights the growing influence of big tech companies in the AI industry, which need access to cloud computing platforms to handle large AI models. This investment follows Microsoft’s $1 billion cash-for-computing investment in OpenAI three years ago, which led to the creation of ChatGPT, a highly advanced chatbot.
Both OpenAI and Anthropic are working in the field of generative AI, which involves creating computer programs that can write scripts and create art in seconds. While Microsoft has sought to integrate OpenAI’s technology into its own services, Google’s relationship with Anthropic is limited to being its tech supplier.
Anthropic was founded in 2021 by a group of researchers who left OpenAI after a disagreement over the company’s direction. The start-up has developed an intelligent chatbot called Claude, which rivals OpenAI’s ChatGPT.
Google’s investment was made by its cloud division, run by former Oracle executive Thomas Kurian, in an effort to catch up with Microsoft’s lead in the AI market. The cloud division is also working with other start-ups to secure a bigger foothold in AI.
Anthropic and Google declined to comment on the investment or the extent of Google’s involvement in the start-up’s business. The company has raised over $700 million before Google’s investment, with its biggest investor being Alameda Research, a crypto hedge fund.