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Google To Invest $2B In Anthropic As AI Funding Wars Heat Up

Oct 27, 2023 - news.crunchbase.com
Google has agreed to invest up to $2 billion in AI startup Anthropic, a competitor to OpenAI. The deal includes an upfront investment of $500 million, with an additional $1.5 billion to be invested over time. This follows a recent deal between Anthropic and Amazon, where the e-commerce giant agreed to invest up to $4 billion in the AI startup.

Despite these significant investments, Anthropic still trails behind OpenAI, which received a $10 billion investment from Microsoft earlier this year. However, Anthropic has been actively raising funds, with recent investments from Google, Spark Capital, and SK Telecom. The company's valuation could potentially reach between $20 billion and $30 billion.

Key takeaways:

  • Google has agreed to invest up to $2 billion in OpenAI competitor, Anthropic, with $500 million upfront and an additional $1.5 billion over time.
  • The new round of funding could potentially value Anthropic between $20 billion and $30 billion.
  • Last month, Anthropic secured a deal with Amazon for an investment of up to $4 billion, with an immediate investment of $1.25 billion.
  • Anthropic has been actively raising funds, with previous investments from Google, a $450 million Series C led by Spark Capital, and a $100 million round from SK Telecom.
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