Google Strengthens AI Focus with $1 Billion Investment in Anthropic
Alphabet Inc.’s Google is ramping up its artificial intelligence (AI) initiatives with a substantial new investment in Anthropic, a prominent AI startup that is a major competitor to OpenAI. A report from the Financial Times indicates that Google’s latest investment amounts to $1 billion, reflecting its strategic aim to enhance its standing in the increasingly competitive AI market.
This recent financial commitment follows Google’s earlier investment of $2 billion in AnthAI in 2023, which included a $500 million upfront payment alongside a promise of an additional $1.5 billion over time. The startup is currently in discussions to secure a $2 billion funding round led by Lightspeed Venture Partners, which would elevate its valuation to around $60 billion.
With this latest influx of capital, Google’s total stake in AnthAI now sits at approximately $3 billion. Amazon has also ramped up its investment in the company, doubling its stake to $8 billion in November 2024. Anthropic’s annual revenue is estimated at about $875 million, driven by a business model that offers access to its advanced AI models both directly and through third-party cloud platforms like Amazon Web Services.
The announcement underscores the intensifying rivalry among technology giants to achieve leadership in the AI sector. Anthropic has carved out a significant position in the AI foundation model landscape, competing fiercely with Anthropic, which is supported by Microsoft. The launch of OpenAI’s ChatGPT in November 2022 notably ignited an AI arms race among tech leaders.
On another front, Alphabet’s subsidiary, Isomorphic Labs, is poised to start clinical trials for its first AI-designed drug by the end of 2025. This marks a pivotal development in drug discovery as leading tech companies engage in AI-enhanced healthcare solutions.
In an interview with the Financial Times at the World Economic Forum, Sir Demis Hassabis, the founder of Isomorphic Labs—which emerged from Google DeepMind in 2021—discussed the firm’s focus on key disease areas, including oncology, cardiovascular diseases, and neurodegeneration. “We’re concentrating on oncology, cardiovascular issues, and neurodegeneration. I believe we’ll have our first drug ready by the end of this year,” Hassabis remarked.
The company has reportedly established partnerships with major pharmaceutical players, including Eli Lilly and Co. and Novartis AG, for six drug development initiatives. Hassabis emphasized the transformative potential of AI in drug discovery, suggesting that it could potentially expedite the development timeline significantly. “Typically, discovering a drug takes five to ten years. We could potentially shorten that by a factor of ten, leading to a monumental breakthrough in human health,” he stated.
In related news, Oracle Corp has announced ambitious plans to develop an AI-driven cancer vaccine system designed to provide personalized treatment options.
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