Nov 01, 2023 828

Google commits to invest $2 billion in OpenAI competitor Anthropic

#Artificial Intelligence

Google agreed to invest up to $2 billion in Anthropic, the artificial intelligence startup founded by ex-OpenAI executives

Google is set to invest up to $2 billion in Anthropic, the artificial intelligence startup founded by former OpenAI executives. The commitment encompasses an initial cash infusion of $500 million, with an additional $1.5 billion to be invested over time, according to an Anthropic spokesperson. The Wall Street Journal previously reported on this planned financing. Google has yet to respond to requests for comment.

Anthropic is renowned for developing Claude 2, a chatbot that competes with OpenAI's ChatGPT and finds use in various companies like Slack, Notion, and Quora. Established in 2021, Anthropic has received funding not only from Google but also from Salesforce and Zoom. The company's valuation earlier this year stood at $4.1 billion.

Claude 2 boasts an impressive ability to summarize content, handling text volumes of up to approximately 75,000 words, equivalent to the length of a book. Users can input extensive datasets and request summaries in memo, letter, or story format. In contrast, ChatGPT can manage approximately 3,000 words.

A study by Arthur AI, a machine learning monitoring platform, found Claude 2 to be the most reliable chatbot in terms of "self-awareness," effectively determining what it knows and providing answers based on its training data. Arthur AI's assessment compared chatbots from Meta, Cohere, and OpenAI.

In April, Google initially invested $300 million in Anthropic, securing a 10% stake. During the same month, Anthropic was one of four companies invited to a White House meeting, alongside representatives from Google parent Alphabet, Microsoft, and OpenAI, to discuss responsible AI development with Vice President Kamala Harris. Notably, Anthropic quickly secured a $450 million funding round in May, marking the largest funding round for an AI company since Microsoft's investment in OpenAI in January.

Dario Amodei, OpenAI's former vice president of research, co-founded Anthropic along with his sister, Daniela Amodei, formerly OpenAI's vice president of safety and policy. The company's founding team includes several other former OpenAI researchers. Dario Amodei previously stated that they dedicated at least two months to developing Claude 2, employing a team of 30 to 35 individuals directly working on the AI model, backed by a total of 150 people. He noted that the AI market is burgeoning, with substantial room for multiple players to succeed due to the high demand for large language models in diverse applications.