TechKnowmad
An artificial intelligence (AI) company called Anthropic AI, which is OpenAI’s competitor is receiving an investment from Google of up to $2 billion. A representative for the new company told Reuters on Friday that Google has made an initial investment of $500 million in Anthropic and has agreed to make additional investments totaling $1.5 billion over time.
The new investment would signal a step up in the company’s efforts to compete with Microsoft, a partner of ChatGPT creator OpenAI, as Big Tech companies race to integrate AI into their applications. Google is already an investor in Anthropic, and the new investment would signal this step up in the company’s efforts.
Anthropic is the company behind the Claude 2 chatbot, which is a competitor to ChatGPT. According to CNBC’s report, numerous companies, including Slack, Notion, and Quora, are putting Claude 2 to use in their operations.
According to the Financial Times, a previous deal between Google and Anthropic entailed the tech giant taking a stake of approximately 10% in the startup and boosting the finances of the latter during a time when it was purchasing substantial computing resources from Google’s cloud computing division. This deal was worth a total of $300 million.
Aside From Google, Amazon Also Invests in Anthropic AI
In addition, Amazon declared a month ago that it would invest up to $4 billion in Anthropic in order to compete with other AI cloud providers that are growing in popularity. The online retailer Amazon disclosed this week in its quarterly report to the United States Securities and Exchange Commission that it had invested in a convertible note from Anthropic for the amount of $1.25 billion. The note has the potential to be converted into equity.
According to reports, Amazon will no longer have the ability to invest up to $2.75 billion in a second note beginning in the first quarter of 2024. In the midst of this AI race between Microsoft, Amazon, and Google, The New York Times reported that Amazon’s investment will help the startup establish “a bigger footprint in AI development.” This will help the company compete with Google and Microsoft.
During the earnings call that took place on Thursday, it was reported that Amazon CEO Andy Jassy told analysts that artificial intelligence presents an opportunity worth “tens of billions” in the company’s cloud business, Amazon Web Services.
Read More: Google Maps Immersive View Update Reveals Multidimensional Experience
The AI Race: Google Leads in Investing
According to reports, as of March of this year, Google had already invested a staggering $30.7 billion in artificial intelligence. The world’s largest technology company has been honing its search engine and other products, such as Google Assistant, with the help of artificial intelligence.
Google has been hard at work expanding its Search Generative Experience (SGE), which is a subset of Google Search that makes use of generative artificial intelligence in order to provide users with answers to their questions.
On the other hand, reports indicate that Amazon has placed a ten billion dollar investment in AI. The company has been making improvements to both its delivery services and its voice assistant, Alexa, by using artificial intelligence.
According to an article published in the New York Times, Microsoft’s investment in OpenAI was estimated to be worth $13 billion. Voice recognition and natural language processing are two examples of how the company is putting artificial intelligence to work to improve its products and services.
Previous statements made by Microsoft’s Chairman and Chief Executive Officer Satya Nadella indicated that the company was “rapidly infusing AI across every layer of the tech stack and for every role and business process to drive productivity gains for our customers.”
According to recent reports, Google is far ahead of the pack when it comes to the number of other tech companies around the world that are making significant financial investments in artificial intelligence technology.