Google invests another billion dollars in Anthropic

Google has decided to invest another billion in Anthropic, four sources said bringing its total sunk costs to more than three billion dollars. Both companies declined to comment. Google uses Anthropic’s Claude AI models an AI-based development platform.

Amazon has too at Anthropic to integrate its Claude AI models into the next generation of Alexa speakers. Other sources say Anthropic is too with Lightspeed Venture Partners to raise another two billion. This investment will make Anthropic worth 60 billion. However, investors don’t believe Anthropic or its competitors will be profitable anytime soon due to the extreme costs of developing AI models.

Google transformers, a type of neural network that became a core technology for AI models in 2017. Despite the known success with like Gemini, Imagen, Chirp, Veo and others, Google does not have such a significant foothold in the generative AI market.

Having so many big tech companies backing AI startups has alarmed the Federal Trade Commission (FTC), which Google Alphabet’s first $2.3 billion investment in Anthropic. However, since Financial Times notes that FTC Commissioner Lina Khan, who had a reputation as an aggressive antitrust authority, has since stepped down as head of the agency after the Trump regime took office, which could mean similar deals may not receive the same scrutiny in future.

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