Google has committed to a new $1 billion investment in Anthropic, the generative AI startup known for its Claude chatbot. This investment builds on Google’s previous $2 billion backing and a 10% ownership stake, as well as a significant cloud contract between the two companies. Anthropic is also in late-stage talks to secure a $2 billion funding round led by Lightspeed Venture Partners, pushing its valuation to an estimated $60 billion.
Anthropic, founded by former OpenAI researchers, has seen rapid growth in the competitive AI market. In December, its annualized revenue hit $1 billion, a tenfold increase year over year, primarily driven by enterprise sales. The company launched its Claude chatbot in 2023, which quickly gained traction as businesses adopted generative AI for sales, marketing, and customer service.
Amazon, another major backer, has invested $8 billion in Anthropic and serves as its primary cloud and training partner. Anthropic uses Amazon Web Services’ specialized chips, Trainium and Inferentia, to train and deploy its advanced AI models. In October, Anthropic introduced technology that allows its AI agents to perform complex computer tasks, such as navigating software, entering text, and browsing websites in real-time.
The generative AI industry, which includes players like Anthropic, OpenAI, and tech giants such as Google, Microsoft, and Amazon, is predicted to generate $1 trillion in revenue within the next decade. Anthropic continues to expand its offerings, launching Claude 3.5 Sonnet in June and Claude Enterprise in September.
As competition intensifies, Google’s substantial investment strengthens its partnership with Anthropic, ensuring its position in the growing AI market. With Amazon and other investors pouring resources into Anthropic, the startup is poised to remain a leader in generative AI development and enterprise solutions.
