Anthropic was evaluated at $4.1 billion earlier this year.
Alphabet’s Google has confirmed the investment of up to $2 billion in the artificial intelligence company Anthropic, creator of Claude 2 chatbot. Anthropic, founded by ex-OpenAI executives Dario and Daniela Amodei, is a rival of ChatGPT creator OpenAI.
The investment consists of $500 million upfront cash infusion and $1.5 billion overtime investment. Google has already invested $300 million in the company, taking a 10% stake.
The investments indicate Google’s increased efforts to better compete with Microsoft which is a major investor in ChatGPT. The AI proxy war is heating up as the demand for large language models is ever increasing and AI is reshaping the cloud industry.
Anthropic, founded in 2021, has received funding from Salesforce and Zoom, in addition to Google, and was valued earlier this year at $4.1 billion. Amazon also agreed to invest $4 billion in the company.
Alphabet, Microsoft, OpenAI and Anthropic were invited to the White House for a meeting with the Vice President Kamala Harris for responsible development of AI.
Claude 2 can summarize up to 75,000 words, allowing users to input vast amounts of data and request summaries as memos, letters, or stories. On the other hand, ChatGPT has a capacity for around 3,000 words.