Alphabet's Google invests $300 million in AI startup Anthropic

Published by MEXEM News

July 25, 2024 2:51 PM

(GMT+2)

Published - February 6, 2023 @ 4:05 PM (EET)

‍

Alphabet's Google Cloud reportedly invested $300 million in Anthropic, an artificial intelligence startup testing a rival to OpenAI's ChatGPT.

According to a person familiar with the deal, Google (NASDAQ:GOOGL) will acquire a stake in the startup but will not require the startup to spend the funds buying cloud services from Google.

While the Financial Times reported Google Cloud's 10% stake in Anthropic on 4 February, the startup confirmed the investment partnership in a tweet on the same day despite not disclosing any figures.

Google and Antrhopic declined to comment on the investment. Still, Alphabet CEO Sundar Pichai, on the company's fourth-quarter earnings call last week, promised it would soon add advanced AI features to its search engine.

"I'm excited by the AI-driven leaps we're about to unveil in Search and beyond," said Pichai on Thursday.

WHY IT MATTERS

The Google-Anthropic partnership follows a high-profile $10 billion investment by Microsoft Corp. (NASDAQ:MSFT) in OpenAI, building on the $1 billion the company poured into the startup in 2019 and another round in 2021.

The language model assistant that Antrhopic is using, known as Claude, is yet to be released to the public. However, the startup plans to expand chatbot access "in the coming months," it said.

Chief Executive officer, Thomas Jurian of Google Cloud, said,

"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."

NOW WHAT

During its transition, cutting costs and pivoting to AI since OpenAI released its chatbot in November, Google Cloud was a bright spot in last week's earnings.

Revenue increased 32% to $7.3 billion, narrowing its operating loss in the segment from $890 million to $480 million.

Thus, in another year, it's likely Alphabet will look like a much different company, having to transform to protect its massive advertising business from threats like ChatGPT.

‍

Ready to get started?

Start trading with the full package, from state of the art platform to free tool and favorable transaction fees.

JOIN US NOW

All investments involve risks, including the possible loss of capital

©️ MEXEM AFRICA (PTY) LTD (MEXEM AFRICA) is an authorized financial services provider (FSP 48325). All trades on the MEXEM AFRICA platform are subject to the legal terms and conditions to which you agree to be bound.

The MEXEM AFRICA platform enables users to invest in securities. MEXEM AFRICA acts as an agent for the issuance of whole shares, where the investor is the registered owner of those shares, entitled to dividends, participation in corporate actions, and all the economic benefits and risks associated with share ownership.

The availability of any share on the MEXEM AFRICA platform is based on various factors but is not an indication of value and does not mean that any share is an appropriate investment for you. Images are for illustrative purposes only and past performance is not necessarily an indication of future performance.
‍
The availability of any share on the browse shares page does not necessarily indicate any contractual relationship between MEXEM AFRICA and the listed company or the payment of fees for services. Brand logos are owned by the respective companies and not by MEXEM AFRICA. The use of a company’s brand logo does not represent an endorsement of MEXEM AFRICA by the company, nor an endorsement of the company by MEXEM AFRICA, nor does it necessarily imply any contractual relationship. Further investment disclosures are available on the MEXEM AFRICA website.

Read our Forms & Disclosures.