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Artificial intelligence Startups

Google Invests $300M In Anthropic As Tech’s AI Arms Race Heats Up

Illustration of a robot holding a gold coin.

Earlier this week, news broke that San Francisco-based AI startup and rival to ChatGPT was raising a $300 million round.

On Friday it was revealed the investor offering up the money would be none other than tech titan 鈥 obviously not willing to stand idly by and let win the battle for AI supremacy.

The news was first reported by the .

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The deal 鈥 which gives Google a 10% stake in the company 鈥 comes just weeks after news broke of Microsoft’s massive investment in聽.

Anthropic鈥檚 AI chatbot, Claude, is in closed beta mode, but , it is expected to combat harmful prompts by explaining why they are dangerous or misguided.

This is not Google鈥檚 and its parent 鈥檚 first foray into AI. In 2015 Alphabet bought , a London-based AI startup founded in 2010, and is building an NLP model .

AI dominance

The new year is shaping up to be an all-out AI war. Late last month, Microsoft finally confirmed it has agreed to a 鈥渕ultiyear, multibillion-dollar investment鈥 into OpenAI, the startup behind the artificial intelligence tools and for a reported $10 billion.听

Per SA国际传媒 data, funding in the AI space has accounted for around 10% of all venture funding in recent years. Even last year, as venture dried up, AI flourished in its second-best funding year ever.听

Just this week, it was that an AI startup co-founded by a pair of entrepreneurs who had left recently raised $8 million. And Perplexity AI, which is developing a search engine that lets people ask questions through a chatbot, is looking to raise a $15 million seed round.听

Anthropic鈥檚 new round could bring the company鈥檚 total valuation to $5 billion, . The startup previously raised $704 million across Series A and Series B funding rounds in 2022, according to SA国际传媒 data.

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Clarification: This story has changed since its original publication to clarify terms of the deal.

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