Google to Invest $1 Billion in AI Startup Anthropic

  • By John K. Waters
  • 01/27/25

Google is reportedly investing more than $1 billion in generative AI startup Anthropic, expanding its stake in one of Silicon Valley's leading artificial intelligence firms, according to a source familiar with the matter.

First reported by the Financial Times, Google's investment brings the tech giant's total stake in Anthropic to around $3 billion. The funding builds on Google's prior investments totaling $2 billion, giving the tech giant a 10% ownership stake and cementing a large cloud contract between the two companies. Anthropic, creator of the Claude chatbot, is among the frontrunners in the AI arms race, competing with OpenAI, backed by Microsoft, and Meta.

The fresh capital infusion coincides with Anthropic's late-stage talks to raise an additional $2 billion at a $60 billion valuation in a round led by Lightspeed Venture Partners, CNBC reported earlier this month.

Founded by former OpenAI executives, Anthropic launched Claude in March 2023. Like ChatGPT and Google's Gemini, Claude has gained traction among businesses integrating AI into sales, marketing, and customer service. The company's revenue, primarily driven by enterprise sales, reached an annualized $1 billion in December, reflecting a tenfold year-on-year increase, the source said.

The generative AI market, projected to surpass $1 trillion in revenue within the next decade, is drawing heavy investment from tech giants, including Amazon and Microsoft. Amazon, which has invested $8 billion in Anthropic to date, announced a $4 billion addition in November. Despite the sizable funding, Amazon remains a minority investor without a board seat.

As part of its partnership with Amazon Web Services, Anthropic has utilized AWS's Trainium and Inferentia chips to develop and deploy its largest AI models. The startup's technology hit a milestone last year with the launch of its Computer Use capability, enabling AI agents to perform human-like interactions with computers, such as navigating websites, entering text, and executing tasks through real-time browsing.

In June, Anthropic unveiled Claude 3.5 Sonnet, its most advanced AI model, followed by the release of Claude Enterprise in September. The company's rapid advancements underscore its position in the fiercely competitive AI sector, as rivals like OpenAI prepare similar capabilities.

About the Author

John K. Waters is the editor in chief of a number of Converge360.com sites, with a focus on high-end development, AI and future tech. He's been writing about cutting-edge technologies and culture of Silicon Valley for more than two decades, and he's written more than a dozen books. He also co-scripted the documentary film Silicon Valley: A 100 Year Renaissance, which aired on PBS.  He can be reached at [email protected].

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