New Delhi, April 25 (IANS). America’s leading tech company Google, playing a big bet in the race of Artificial Intelligence (AI), has planned to invest up to $ 40 billion in AI company Anthropic. This step has been taken at a time when big tech companies around the world are rapidly investing in advanced AI models and infrastructure.
According to reports, an initial investment of $10 billion will be made in this proposed investment, which will be based on Anthropic’s valuation of $380 billion. After this, the remaining $30 billion will be invested based on the company’s performance-related targets.
This investment further strengthens the already ongoing partnership between the two companies. Under this partnership, Google provides Anthropic with cloud infrastructure and access to its AI models, particularly the Cloud Series.
Additionally, Anthropic uses Google’s custom Tensor Processing Units (TPUs), which are an alternative to traditional graphics processing units (GPUs).
The increasing demand for AI tools is placing increasing pressure on computing infrastructure. In view of this, Anthropic has recently achieved 5 gigawatt compute capacity in collaboration with Google and Broadcom and plans to increase it further.
Interestingly, despite the partnership, both the companies are also competitors of each other in the AI market. Google’s Gemini models are giving tough competition to Anthropic’s AI models.
Google had invested $300 million in Anthropic for the first time in 2023, giving it about a 10 percent stake. Later this investment increased to more than $3 billion and before the deal its stake was said to be around 14 percent.
Anthropic was founded in 2021 by former Open AI researchers, and its cloud models have gained rapid popularity. The company’s annual income has crossed $30 billion.
Before this, Amazon has also invested $5 billion in Anthropic and has committed to invest additional up to $20 billion.
–IANS
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