Google (GOOGL, Financial) has recently bolstered its investment in AI developer Anthropic with an additional $1 billion. This new investment is on top of a previously committed $2 billion, strengthening Google's position in the competitive AI landscape against rivals like Microsoft (MSFT), Amazon (AMZN), and Meta (META). Founded by former OpenAI employees in 2021, Anthropic is known for its Claude AI models, focusing on AI safety and innovative features, including complex task execution by AI agents on behalf of users.
Anthropic is reportedly close to securing another $2 billion from venture firms led by Lightspeed Venture Partners, potentially raising its valuation to approximately $60 billion. The company's revenue is projected to reach $1 billion by December 2024, marking a tenfold increase from the previous year. Despite high development costs for advanced AI models, investors remain optimistic about the technology's potential to generate trillions in value.
Google's additional funding comes amid a $100 billion AI data center project by OpenAI, Microsoft, Oracle, SoftBank, and other backers, dubbed the "Stargate Project." Meanwhile, Amazon has invested $8 billion in Anthropic over the past 18 months, its largest risk investment ever, with plans to integrate Anthropic's models into its Alexa devices. This reflects the rising interest in the AI industry, with nearly half of the U.S. venture capital funding in 2024 directed towards AI companies. According to CB Insights, Anthropic's transaction would make it the fifth most valuable U.S. startup, following SpaceX, OpenAI, Stripe, and Databricks.
