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- 1 Anthropic, a rival of Open AI, is all set to receive $2 Billion in funds from Google.
- 2 This move highlights the willingness of Google to step into the AI arena.
- 3 The founders of Anthropic previously held positions at Sam Altman’s Open AI.
Artificial intelligence (AI) technology is booming and the companies around it are playing significant roles. Giant companies and VCs also ensure the continued flow of funding to prominent players in the field. One of the leading AI chatbot creator companies, Anthropic, reportedly saw a deal worth $2 Billion from search engine giant Google.
The Wall Street Journal reported on October 27 about Google’s plan to invest in Anthropic. The move shows the tech company’s keenness towards the development of artificial intelligence.
Citing the people familiar with the matter, WSJ reported that Google has already given $500 Million up front to the rival company of ChatGPT parent company, Sam Altman’s OpenAI. The remaining amount promised for the deal, $1.5 Billion, will be available in the coming months.
OpenAI has made its name in the company setting several milestones after the launch of an AI chatbot dubbed ChatGPT. After the launch in November 2022, it gathered an unprecedented user base of 100 Million within a couple of months.
From the very start, the company had received funding with the most notable ones from operating system creator Microsoft. The company started pouring money into Sam Altman’s company in 2019 and reportedly invested about $13 Billion to date.
Undoubtedly, OpenAI is ahead but with the recent funding rounds, Anthropic seems to be catching up rapidly. A few months back, Google Cloud invested $3 Billion in the AI company while e-commerce pioneer Amazon reportedly invested $4 Billion in September this year.
Finding Anthropic After Parting from OpenAI
The sibling co-founders of Anthropic, Dario and Daniela Amodei, previously held positions at OpenAI but parted ways with the organization in 2021. Their departure stemmed from disagreements with OpenAI’s CEO, Sam Altman, primarily concerning safety matters associated with the development of AI systems.
In the absence of backing from tech giants like Google and Amazon, Anthropic found support primarily from Sam Bankman-Fried, the former CEO of FTX. In April 2022, Bankman-Fried made a substantial investment of approximately $530 Million in Anthropic, a move that took place roughly seven months before the collapse of FTX.
Anthropic has channeled a significant portion of these investments into the training of its AI systems, notably its AI assistant known as Claude. The company’s objective is to make a groundbreaking advancement in the field of artificial intelligence, positioning itself at the forefront of the industry.
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