Alphabet Inc.’s Google is investing an additional $1 billion in AI developer Anthropic, increasing its stake in one of the leading rivals to OpenAI.
This new funding adds to the over $2 billion Google has already invested in Anthropic, according to a source familiar with the deal who requested anonymity.
Google also has a business agreement with Anthropic for the use of a suite of online tools and services.
Anthropic is reportedly close to securing an additional $2 billion from venture firms led by Lightspeed Venture Partners, potentially boosting its valuation to around $60 billion.
The company’s revenue is projected to hit $1 billion by December 2024, a tenfold increase from the previous year.
Despite the high costs of developing advanced AI models, investors remain optimistic about the technology’s potential to create trillions in value.
Google’s additional funding comes as OpenAI, Microsoft, Oracle, SoftBank, and other backers are undertaking a $100 billion AI data center project, known as the “Stargate Project.”
Meanwhile, Amazon has invested $8 billion in Anthropic over the past 18 months, marking its largest-ever risk investment, with plans to integrate Anthropic’s models into its Alexa devices.
This highlights the increasing interest in the AI industry, with nearly half of U.S. venture capital funding in 2024 allocated to AI companies.
