The race to dominate the future of artificial intelligence is heating up, with two tech behemoths, Alphabet’s Google and Amazon.com, announcing substantial investments in AI company, Anthropic.
Google’s Strengthening Stance in the AI Space
A spokesperson from Anthropic confirmed that Google has pledged to funnel as much as $2 billion into the startup. With an initial infusion of $500 million, Google has made its intentions clear, promising to add another $1.5 billion over an unspecified period. This move isn’t Google’s first tryst with Anthropic. In fact, this new injection of funds intensifies Google’s endeavors to robustly challenge its rivals, especially as the likes of Microsoft continue to back AI giants such as OpenAI, the creators of ChatGPT.
Amazon’s Bold AI Aspirations
Close on the heels of Google, Amazon.com revealed plans last month to invest a whopping $4 billion in Anthropic, signaling its ambitions to stand toe-to-toe with emerging competitors in the AI-powered cloud sector. In a recent submission to the U.S. Securities and Exchange Commission, Amazon provided clarity on its commitment, highlighting a $1.25 billion note investment in Anthropic, convertible to equity. Moreover, Amazon retains the option to further invest up to $2.75 billion before the first quarter of 2024.
While Google stayed mum on the developments, Amazon refrained from commenting immediately when approached by news agency Reuters.
The Broader Implication for Asia-Pacific
The Wall Street Journal was the first to break the news of Google’s renewed partnership with Anthropic, spotlighting the ever-growing allure of AI startups for major cloud companies. Anthropic, led by former OpenAI leaders Dario and Daniela Amodei, exemplifies the new wave of startups in the region. Their pursuit of significant resources and the backing of industry titans underscores the burgeoning tech movement in the Asia-Pacific region and its pivotal role in shaping the future of the global tech industry.
