According to legal filings submitted as part of a Google antitrust case, Google owns a 14% stake in the artificial intelligence startup Anthropic. The internet giant’s investment in Anthropic is capped at 15% and holds no voting rights, board seats, or board observer rights in the company. Court documents reveal that Google is set to invest an additional $750 million in Anthropic in September through a convertible loan.
The companies agreed to the convertible note in 2023. Google has invested more than $3 billion in the AI company. Such investments have raised questions from regulators and industry competitors, who question whether these deals give incumbents an unfair advantage in the rapidly evolving and powerful technology sector.
Apart from Google, companies like Amazon and Microsoft have also invested in high-profile AI startups such as Anthropic and OpenAI, the maker of the ChatGPT chatbot.
Google invests $750 million more.
A big company like Google knows that there is a race to AI, and it has a big enough cash pile that it can bet on multiple horses,” said Chris V.
Nicholson, an investor with the venture capital firm Page One Ventures, focuses on AI technologies. Google’s significant investment in Anthropic underscores its commitment to remaining at the forefront of artificial intelligence development and maintaining a competitive edge in the tech industry. The company has invested significantly in various AI startups to win the artificial intelligence race.
Despite its substantial investment, Google has limited control over Anthropic. The startup’s valuation has surged to $61.5 billion, while its annual revenue reached $1.4 billion earlier this month. Projecting even greater growth, the company anticipates its revenue could rise to $34.5 billion by 2027.
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