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Google to invest £1.6bn in AI firm Anthropic

Written by Wed 1 Nov 2023

Google is said to be allocating up to £1.6 billion ($2 billion) to invest in the artificial intelligence (AI) company Anthropic.

Google will initially invest £411 million ($500 million) in Anthropic, an AI startup co-founded by former senior members of OpenAI. Google will have scope to provide an additional £1.2 billion ($1.5 billion) in funding over time. 

The investment is expected to position Google as a strong competitor in the AI race. No valuation of Anthropic was reported after Google’s investment announcement.

Google previously invested £453 million ($550 million) and acquired a 10% stake in Anthropic in 2022.

Tech firms Invest in AI

As companies prioritise AI, major tech firms have increased investments to stay competitive in the growing market.

Amazon invested £3.2 billion ($4 billion) into Anthropic in September. As part of the investment, either party can initiate an additional £2.25 billion ($2.75 billion) in funding from Amazon. Amazon employees and cloud users will gain early access to Anthropic’s technology as part of the investment.  

Anthropic also received backing from SK Telecom, with a £78 million ($100 million) investment in August. SK Telecom is one of the biggest mobile carriers in South Korea. The two companies will build a multilingual large language model (LLM) customised for global telco firms.

Microsoft extended its partnership with ChatGPT creator OpenAI with an £8.2 billion ($10 billion) investment announced in January. The investment followed previous investments made in 2019 and 2021 into the AI startup.

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Written by Wed 1 Nov 2023

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