Google has committed to a new investment exceeding $1 billion in Anthropic, a leading generative AI startup, a source familiar with the matter confirmed to CNBC. This latest funding builds on Google’s prior $2 billion investment in Anthropic, alongside a 10% ownership stake and a substantial cloud services contract between the two companies.
Anthropic, known for its Claude AI chatbot, continues to solidify its position in Silicon Valley’s AI arms race. The company is reportedly in advanced talks to raise $2 billion in a funding round led by Lightspeed Venture Partners, targeting a $60 billion valuation, as previously reported by CNBC.
The Financial Times first reported Google’s latest investment.
Anthropic’s Rapid Growth
The startup’s growth has been remarkable, with annualized revenue hitting $1 billion in December—a tenfold increase year over year, primarily driven by enterprise sales.
Founded by former OpenAI executives, Anthropic has been heavily supported by Amazon, which announced an additional $4 billion investment in November, bringing its total backing to $8 billion. Despite its significant financial contributions, Amazon remains a minority investor without a seat on Anthropic’s board.
Amazon Web Services (AWS) has been named Anthropic’s primary cloud and training partner. Anthropic leverages AWS’s Trainium and Inferentia chips to train and deploy its advanced AI models.
Technological Advancements
Anthropic continues to push the boundaries of AI innovation. In October, the company introduced its "Computer Use" capability, enabling its AI to perform complex tasks on computers similarly to humans. This feature allows AI to interpret screens, interact with software, and complete multi-step processes across various platforms.
Jared Kaplan, Anthropic’s chief science officer, described the tool as transformative. "It can perform tasks with tens or even hundreds of steps, mirroring human computer use," Kaplan told CNBC.
OpenAI, another major player in generative AI, is reportedly working on a comparable feature.
Recent Milestones
Anthropic launched Claude 3.5 Sonnet, an enhanced AI model, in June 2024. By September, it introduced Claude Enterprise, marking its most significant product rollout since the Claude chatbot debuted in March 2023.
The generative AI market, encompassing players like Anthropic, OpenAI, Google, Amazon, Microsoft, and Meta, is projected to surpass $1 trillion in revenue within the next decade. Industry giants are heavily investing in startups and advancing their in-house technologies to capitalize on this rapidly growing sector.
Google’s latest investment underscores the competitive dynamics in the generative AI space, further positioning Anthropic as a key contender in shaping the future of artificial intelligence.