Connect with us

Hi, what are you looking for?

Alive Business PlanAlive Business Plan

Stock

Google invests another $1 bln in OpenAI competitor Anthropic, FT reports

Investing.com– Google (NASDAQ:GOOGL) has invested an additional $1 billion into Anthropic, a leading AI start-up and OpenAI’s rival, the Financial Times reported on Wednesday citing sources familiar with the matter.

The move strengthens Alphabet-owned (NASDAQ:GOOG) Google’s position in the AI race as it continues to challenge competitors like Microsoft Corporation (NASDAQ:MSFT), Amazon.com Inc (NASDAQ:AMZN), and Meta Platforms Inc (NASDAQ:META), the report stated.

This new investment builds on the $2 billion Google had already committed to Anthropic, which is best known for its Claude family of AI models.

The investment is part of Google’s broader effort to diversify its artificial intelligence business and capitalize on its early role in developing AI technologies. Despite pioneering the foundational technology for models like Claude and OpenAI’s GPT-4, Google has faced challenges in commercializing these advancements, the FT report stated.

Anthropic, founded in 2021 by former OpenAI employees, has focused on AI safety and has introduced innovative features, including AI agents capable of performing complex tasks on behalf of users.

The company is also close to securing an additional $2 billion in funding from venture capital firms led by Lightspeed Venture Partners, which would value it at approximately $60 billion, the report said.

This comes amid fierce competition in the AI space, where Anthropic faces rivals such as OpenAI, Elon Musk’s xAI, and Big Tech players like Amazon and Microsoft. Amazon has invested $8 billion in Anthropic over the past 18 months, its largest-ever venture investment, and plans to integrate Anthropic’s models into its Alexa devices, according to the FT report.

Anthropic’s annualized revenue reached $1 billion in December 2024, growing tenfold over the past year, the Financial Times reported citing sources. However, profitability remains elusive due to the high costs of developing advanced AI models, with investors banking on the technology’s potential to generate trillions in value, it added.

This post appeared first on investing.com
Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    You May Also Like

    Latest News

    The Gateway Pundit, a far-right website, published a note from its editor on Saturday acknowledging that two election workers in Georgia did not engage...

    Latest News

    Sister Stephanie Schmidt had a hunch about what her fellow nuns would discuss over dinner at their Erie, Pennsylvania, monastery on Wednesday night. The...

    Investing

    JAKARTA (Reuters) -Indonesia has asked Alphabet (NASDAQ:GOOGL)’s Google and Apple (NASDAQ:AAPL) to block Chinese fast fashion e-commerce firm Temu in their application stores in...

    Latest News

    New majorities in Congress, particularly when the incoming party has a new leader, offer the rare chance for the institution to take a breath...



    Disclaimer: alivebusinessplan.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 alivebusinessplan.com