Google Invests Over $1 Billion in AI Startup Anthropic Amid Tech Race

DAVOS, Switzerland — Google has committed to a new investment exceeding $1 billion in Anthropic, a leading generative AI startup, a source familiar with the matter confirmed to CNBC on Jan. 21, 2025. The funding strengthens Google’s existing partnership with Anthropic, which includes a 10% ownership stake and a significant cloud services contract.

The investment comes as Anthropic, known for its Claude AI chatbot, is in advanced discussions to raise an additional $2 billion in funding led by Lightspeed Venture Partners. The company’s annualized revenue reached $1 billion in December 2024, marking a tenfold increase from the previous year, according to the source. Anthropic’s revenue is primarily driven by enterprise sales.

Founded by former OpenAI executives, Anthropic launched Claude in March 2023. The chatbot has gained widespread adoption in business applications, including sales, marketing, and customer service. The generative AI market, which includes major players like OpenAI, Google, Amazon, and Microsoft, is projected to generate substantial revenue within the next decade.

Amazon, another key investor in Anthropic, announced a $4 billion investment in November 2024, bringing its total commitment to $8 billion. Amazon Web Services (AWS) serves as Anthropic’s primary cloud and training partner, utilizing AWS’s Trainium and Inferentia chips for AI model development.

Anthropic has made significant strides in AI technology, including the development of its Computer Use capability, which allows AI agents to perform complex tasks on computers. “The tool can use computers in basically the same way that we do,” said Jared Kaplan, Anthropic’s chief science officer, in a CNBC interview. “It can handle tasks with tens or even hundreds of steps.”

In June 2024, Anthropic released Claude 3.5 Sonnet, its most advanced AI model to date, followed by a major product launch in September. The company’s rapid growth and technological advancements underscore its position as a key contender in the competitive AI landscape.