Google finances ChatGPT rival Anthropic with approximately $400 million

Google finances ChatGPT rival Anthropic with approximately $400 million

According to a source familiar with the transaction, Google, a subsidiary of Alphabet Inc., has invested close to $400 million in artificial intelligence firm Anthropic AI, which is developing a competitor to OpenAI’s ChatGPT.

A brief about Google finances ChatGPT rival Anthropic with approximately $400 million

An announcement of a cooperation in which Anthropic will make use of Google’s cloud computing facilities was made separately by Google and Anthropic, who reportedly declined to comment on the investment. The agreement represents the most recent partnership between a tech behemoth and an AI startup as the market for generative AI technology—which can produce text and artwork in a matter of seconds—heats up.

“From academic research, AI has developed into one of the major forces driving technological development, bringing about new prospects for business expansion and better services in many sectors, “In a statement, Thomas Kurian, the CEO of Google Cloud, stated.

“Google Cloud is offering open infrastructure for the next generation of AI entrepreneurs, and our relationship with Anthropic is a terrific example of how we’re letting people and businesses tap into the power of trustworthy and ethical AI,” Kurian continued.”

Anthropic AI, a company founded in 2021 by former executives of OpenAI Inc., notably Daniela and Dario Amodei, published a restricted test of Claude in January to compete with OpenAI’s massively successful ChatGPT chatbot.

The Microsoft Corporation’s high-profile $10 billion investment in OpenAI, which expanded on the $1 billion it had already invested in the AI startup in 2019 and another round in 2021, came after the Google-Anthropic partnership.

Such partnerships open up access to some of the most well-known and cutting-edge AI systems for more seasoned businesses like Microsoft and Google. A tech behemoth like Google can give the finance and cloud computing resources that startups like Anthropic require. Google’s cloud business will provide Anthropic with advanced AI chips and computing power to train and deploy its upcoming AI products, according to the company’s announcement of the arrangement.

Claude, Anthropic’s language model assistant, hasn’t yet been made available to the general public, but the business stated it would “in the coming months” widen access to the chatbot.”

The agreement highlights Google’s dedication to AI, especially in light of potential future applications outside of the company’s main search business. The AI-driven advancements we’re about to make in Search and beyond have me excited “Sundar Pichai, the CEO of Alphabet, said this on Thursday as the business released its fourth-quarter earnings. In the “next weeks and months,” he claimed, Google would make chatbots available for use by customers “as a complement to search.”

Notably, the Financial Times had earlier reported Google’s stake in Anthropic.

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