Google Invests $400 Million in ChatGPT Rival Anthropic

Google, a subsidiary of Alphabet Inc., has invested approximately $400 million in Anthropic, an AI startup that is experimenting with a competitor to OpenAI’s ChatGPT. Anthropic has plans to utilize Google’s cloud computing services.

This agreement represents the latest collaboration between a technology giant and an AI startup as the area of generative AI, which can produce text and art quickly, continues to grow. Google has gained a stake in Anthropic through the deal, but the startup is not required to use the funds on Google’s cloud services.

Photo by Ann H on

Google Cloud’s CEO, Thomas Kurian, stated that AI has progressed from academic research to become a major driving force behind technological change and that Google Cloud aims to provide open infrastructure for upcoming AI startups. Anthropic AI was established in 2021 by former OpenAI leaders and in January, released a limited test of a chatbot named Claude, which is a rival to OpenAI’s ChatGPT.

This partnership follows Microsoft’s $10 billion investment in OpenAI and the added benefit for larger companies like Google and Microsoft is access to some of the most advanced AI systems. Meanwhile, startups like Anthropic benefit from the funding and cloud resources that a tech giant like Google can offer.

Microsoft’s investment in OpenAI was announced in 2021. This investment builds on Microsoft’s previous investments in OpenAI, including a $1 billion investment in 2019 and additional funding rounds in 2021. The partnership gives Microsoft access to some of the most advanced AI systems, including ChatGPT. OpenAI’s GPT models have achieved state-of-the-art results in a number of natural language processing tasks, such as language translation and text generation. Microsoft plans to integrate OpenAI’s technology into its own offerings, including its Azure cloud computing platform, to provide its customers with advanced AI capabilities. The investment is part of Microsoft’s larger strategy to advance its AI capabilities and stay competitive in the rapidly evolving field of AI technology.

OpenAI was founded in 2015 with the goal of promoting and developing friendly AI in a responsible way that benefits humanity. Since then, it has become a leading player in the field of AI research and development, and is known for its breakthroughs in generative language model ChatGPT.

Google has announced that its cloud division will provide computing power and advanced AI chips for Anthropic to use in training and deploying its AI products. Anthropic’s language model assistant, Claude, is yet to be released to the public but the startup intends to broaden access in the near future.

The deal underscores Google’s commitment to AI, particularly in ways that may be expanded beyond the company’s core search business. “I’m excited by the AI-driven leaps we’re about to unveil in Search and beyond,” Alphabet CEO Sundar Pichai said Thursday as the company reported fourth-quarter earnings. He said Google intended to release chatbots “in the coming weeks and months” and allow consumers to use such products “as a companion to search.”

The artificial intelligence (AI) market is expected to experience significant growth in the upcoming years. As more businesses and organizations adopt AI technologies to improve their operations and services, the demand for AI solutions is expected to increase. Advancements in AI technology, such as natural language processing and machine learning, are enabling businesses to automate tasks, make more informed decisions, and enhance customer experiences. The growing demand for AI is also driving innovation in the field, leading to the development of new AI applications and solutions. The increasing availability of data, cloud computing resources, and powerful hardware is also fueling the growth of the AI market.





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