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Google Inks $1 Billion Investment in AI Rival Anthropic
Google has committed an additional $1 billion to Anthropic, a leading AI start-up rivaling OpenAI, according to the Financial Times. This move solidifies Google’s position in the AI race as it continues to compete with Microsoft, Amazon, and Meta.
This new investment builds on the $2 billion Google already invested in Anthropic, which is best known for its Claude family of AI models. The investment is part of Google’s effort to diversify its AI business and capitalize on its early role in developing AI technologies. Despite pioneering AI models, Google faces challenges in commercializing these advancements.
Anthropic, founded in 2021 by former OpenAI employees, focuses on AI safety and has introduced innovative features, including AI agents capable of performing complex tasks on behalf of users. The company is close to securing an additional $2 billion in funding from venture capital firms, valuing it at approximately $60 billion.
The AI space is highly competitive, with rivals like OpenAI, xAI, and Big Tech players Microsoft and Amazon. Amazon has invested $8 billion in Anthropic over the past 18 months, planning to integrate its models into its Alexa devices. Anthropic’s annualized revenue reached $1 billion in December 2024, growing tenfold over the past year, but profitability remains elusive due to the high costs of developing advanced AI models.