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Google to invest fresh $1 bln in OpenAI rival Anthropic, FT reports

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Google is making a fresh investment of more than $1 billion into AI startup Anthropic, the Financial Times reported on Wednesday.


This comes after Reuters and other media reported earlier in January that Anthropic was nearing a $2 billion fundraise in a round, led by Lightspeed Venture Partners, valuing the firm at about $60 billion.


The FT said that Google's new investment was separate from the Lightspeed funding round.


Anthropic, a major competitor of OpenAI in the AI foundation model space, declined to comment.


Google did not immediately respond to a request for comment outside regular business hours.


Google already has an existing commitment of $2 billion in Anthropic, while e-commerce giant Amazon doubled its stake in the AI company to $8 billion late last year. Anthropic, whose annualized revenue hit about $875 million, sells access to its models directly and through third-party cloud services including Amazon Web Services. The development of large language models requires expensive computing as well as top talent. Microsoft-backed OpenAI triggered an AI arms race after it launched ChatGPT in November 2022.


The growing popularity of the company and new product launches helped it close a $6.6 billion funding round in October, potentially taking its valuation to $157 billion.


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