An illuminated Google logo is seen inside an office building in Zurich, Switzerland, December 5, 2018. REUTERS/Arnd Wiegmann/File Photo Acquire Licensing Rights
On October 27, Alphabet’s (GOOGL.O) Google agreed to invest as much as $2 billion in the artificial intelligence firm Anthropic, according to a spokesperson for the startup.
Google initially invested $500 million in the OpenAI rival, with plans to add an additional $1.5 billion over time, the spokesperson confirmed.
This additional investment by Google underscores its efforts to compete more effectively with Microsoft (MSFT.O), a prominent supporter of OpenAI, as major tech companies strive to integrate AI into their applications.
Amazon.com (AMZN.O) also announced last month that it would invest up to $4 billion in Anthropic to compete with emerging AI-focused cloud rivals.
In its quarterly report to the U.S. Securities and Exchange Commission this week, Amazon disclosed its investment in a $1.25 billion note from Anthropic that has the potential to convert into equity. Amazon has the option to invest up to $2.75 billion in a second note, with the deadline for such an investment expiring in the first quarter of 2024.
Google declined to provide a comment, and Amazon did not respond immediately to Reuters’ request for comment.
The Wall Street Journal previously reported Google’s latest agreement with Anthropic.
The growing number of investments underscores the ongoing efforts of cloud companies to establish connections with AI startups that are reshaping the industry.
Anthropic, co-founded by former OpenAI executives and siblings Dario and Daniela Amodei, has been actively securing the resources and support required to compete with OpenAI and become leaders in the technology sector.
Reporting by Krystal Hu in New York and Chavi Mehta in Bengaluru; Additional reporting by Jeffrey Dastin; Editing by Anil D’Silva, Devika Syamnath, and Chris Reese




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