Tech Giant Google Makes $300 Million Investment in AI Firm Anthropic

• Microsoft has previously invested millions of dollars into OpenAI, the firm behind ChatGPT.
• Google will acquire a share of roughly 10 percent in Anthropic.

With Google’s $300 million investment in artificial intelligence startup Anthropic, it seems that the AI arms race has started in earnest. The IT giant is investing in the firm in order to strengthen its position as a competitor in the emerging area of generative AI.

Since the release of the immensely popular ChatGPT, the use of artificial intelligence has become something of a phenomenon. Microsoft has previously invested millions of dollars into OpenAI, the company behind ChatGPT. Seemingly, Google is aiming for the same thing at the moment.

Tech Giants Banking on AI

In recent weeks, ChatGPT has been all over the news, having surpassed the one million user mark before other applications like Instagram and TikTok. The OpenAI-created software has unwittingly sparked competition to the top in artificial intelligence and increased funding for AI research. 

Google is the next major player to join the industry, having just invested $300 million in artificial intelligence (AI) startup Anthropic.  Google will acquire a share of roughly 10 percent, enabling Anthropic to use the money to purchase computer capacity from the search company’s cloud computing division, according to three individuals familiar with the agreement as per FT.

This follows Microsoft’s investment in OpenAI a few months ago and is part of a larger pattern. Microsoft’s wide product portfolio may now benefit from incorporating ChatGPT thanks to the tech giant’s wise investment.

Similarly to OpenAI, Anthropic is keen to keep digging into and improving upon generative AI. In particular, the development of very complex computer systems that can compose scripts and generate results on par with humans in seconds will continue.