NEW YORK: Google is making a fresh investment of more than US$1 billion into AI startup Anthropic, the Financial Times reported todaay.
This comes after Reuters and other media reported earlier in January that Anthropic was nearing a US$2 billion fundraise in a round, led by Lightspeed Venture Partners, valuing the firm at about US$60 billion.
The FT said that Google’s new investment was separate from the Lightspeed funding round.
Anthropic, a major competitor of OpenAI in the AI foundation model space, declined to comment.
Google did not immediately respond to a request for comment outside regular business hours.
Google already has an existing commitment of US$2 billion in Anthropic, while e-commerce giant Amazon doubled its stake in the AI company to US$8 billion late last year.
Anthropic, whose annualised revenue hit about US$875 million, sells access to its models directly and through third-party cloud services including Amazon Web Services.
The development of large language models requires expensive computing as well as top talent.
Microsoft-backed OpenAI triggered an AI arms race after it launched ChatGPT in November 2022.
The growing popularity of the company and new product launches helped it close a US$6.6 billion funding round in October, potentially taking its valuation to US$157 billion.
