Google taking on ChatGPT? Search giant to invest $2 billion in OpenAI rival Anthropic

Google has agreed to an investment of upto USD 2 billion in artificial intelligence (AI) company Anthropic. The start-up is a rival of OpenAI, the maker of widely popular generative AI tool ChatGPT. The announcement about the latest investment has been made by a spokesperson for Anthropic, Reuters reported. Alphabet's Google is already invested in Anthropic. It has invested USD 500 million and now has agreed to add USD 1.5 billion more over time. The fresh announcement reflects Google's intention to take on Microsoft-backed OpenAI. Google has already released Bard, its own generative AI. However, it has not been able to match the massive popularity of ChatGPT.

Since the launch of ChatGPT, BigTech companies have scrambled to infuse AI into their applications.

Even Amazon declared last month that it would pump-in up to USD 4 billion in Anthropic. In a quarterly report Amazon filed with the US Securities and Exchange Commission this week, the tech giant said that it had already invested USD 1.25 billion in Anthropic which can be converted to equity. Amazon's Bedrock AI service has drawn thousands of customers.Since the success of ChatGPT, cloud companies are investing big bucks in order to establish ties with AI start-ups that have potential to reshape the industry.

Anthropic was co-founded by former OpenAI executives and siblings Dario and Daniela Amodei. The company has made efforts to get resources and rope-in deep-pocketed backers in order to compete with OpenAI.

?"Generative AI is a massive catalyst that could re-ignite growth within the (AWS) franchise," said Global X analyst Tejas Dessai. "We see some major partnerships secured in this quarter, as key towards driving that growth in the coming quarters."