Google has confirmed a new investment exceeding $1 billion in the AI startup Anthropic, according to sources familiar with the matter. This investment adds to Google’s previous $2 billion funding and a 10% ownership stake in the company, which is known for its Claude AI chatbot.
The new funding agreement comes as Anthropic is engaged in late-stage discussions to secure an additional $2 billion in funding at a valuation of $60 billion, led by Lightspeed Venture Partners.
In December, Anthropic reported an annualized revenue of $1 billion, marking a tenfold increase from the previous year, primarily driven by enterprise sales. The Financial Times first disclosed Google’s investment details.
Founded by former OpenAI researchers, Anthropic has gained significant traction in the competitive AI landscape, with its Claude chatbot becoming increasingly popular among businesses utilizing generative AI for various functions like sales and customer service.
The generative AI market, which includes major players like Google, Amazon, and Microsoft, is projected to exceed $1 trillion in revenue within the next decade. Amazon has also heavily invested in Anthropic, committing an additional $4 billion in November, bringing its total investment to $8 billion.
Despite being a minority investor, Amazon’s involvement has led to a strategic partnership, with Amazon Web Services serving as Anthropic’s primary cloud and training partner.
Anthropic has made significant advancements in technology, showcasing its AI agents’ ability to perform complex tasks similarly to humans. This capability allows its systems to interpret computer screens, navigate websites, and execute tasks across various software.
The startup has also launched Claude 3.5 Sonnet, a more powerful AI model, and Claude Enterprise, its largest product release since the chatbot’s introduction, further solidifying its position.
