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Google invests $400 million in Anthropic to battle the power of ChatGPT

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Alphabet’s Google is reportedly investing almost $400 million in artificial intelligence (AI) startup Anthropic, which is working on a rival to OpenAI’s ChatGPT, according to a report by the Los Angeles Times.

Google invests $400 million in Anthropic to battle the power of ChatGPT

The deal was revealed by a person familiar with the matter.

The partnership, without the financial details, was shared on a blog by Anthropic.

“We're partnering with Google Cloud to support the next phase of Anthropic, where we're going to deploy our AI systems to a larger set of people,” said Anthropic CEO Dario Amodei. 

“This partnership gives us the cloud infrastructure performance and scale we need.”

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The partnership is designed so that the companies can co-develop AI computing systems.

“We are eager to use the Google Cloud infrastructure to build reliable, interpretable, and steerable AI systems. This partnership with Google Cloud will let us build a more robust AI platform,” further added Amodei.

We're excited to use Google Cloud to train our AI systems, including Claude! https://t.co/IaqQ5lpJrP https://t.co/vOn5Cj4sPt

— Anthropic (@AnthropicAI) February 3, 2023

Anthropic was founded in 2021 by former leaders of OpenAI. In January, the company released a limited test of a new chatbot named Claude which the firm hoped would compete with OpenAI's ChatGPT.

One of the biggest drivers of technological change

“AI has evolved from academic research to become one of the biggest drivers of technological change, creating new opportunities for growth and improved services across all industries,” Thomas Kurian, chief executive officer of Google Cloud, said in a statement. 

“Google Cloud is providing open infrastructure for the next generation of AI startups, and our partnership with Anthropic is a great example of how we’re helping users and businesses tap into the power of reliable and responsible AI.”

Deals such as these give more established companies a chance to access AI systems in development. In turn, the AI startups make the most of the funding and cloud-computing resources that the tech giants offer. 

In the coming months

Anthropic’s Claude has yet to be released to the public. However, the company has shared that it plans to make the chatbot more available “in the coming months.”

“I’m excited by the AI-driven leaps we’re about to unveil in Search and beyond,” Alphabet CEO Sundar Pichai said Thursday during a fourth-quarter earnings meeting. He added that Google intended to release chatbots “in the coming weeks and months as a companion to search.”

The report was published by theLos Angeles Times.

Earlier in the month, Swiss banking giant UBS reported that ChatGPT may have surpassed 100 million monthly active users at the end of January, making it possibly the fastest-growing app in history.

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