SAEDNEWS: Google is set to make an investment of over $1 billion in an AI startup named Anthropic.
Earlier this month, reports surfaced that Anthropic, a prominent player in the generative AI space, raised around $2 billion in funding, bringing the startup's valuation to $60 billion. This funding round was led by Lightspeed Venture Partners.
In a separate development, Google has announced an additional investment of $1 billion in Anthropic, bringing its total investment to $3 billion. This new funding builds on Google's previous investments and solidifies its 10% ownership stake in the startup. Google also has a significant cloud contract with Anthropic.
Amazon, another major investor in Anthropic, doubled its financial commitment to $8 billion last year. This includes an initial investment of $4 billion followed by an additional $4 billion in November 2024. As part of this investment, Amazon Web Services (AWS) became Anthropic's primary cloud and training partner.
Anthropic's annual profit has reached approximately $875 million. The startup generates revenue through enterprise sales of its cloud services and foundational AI models. Developing these large language models requires expensive computing equipment and highly skilled talent.
OpenAI, a significant competitor in the foundational model space, launched the ChatGPT language model in November 2022. The growing popularity of ChatGPT and OpenAI's new products helped the company secure a $6.6 billion budget last October, raising its valuation to $157 billion
