Google’s investment in anthropic

To win the Artificial Intelligence Race, Google has not only developed its techniques, but has also pumped money in major AI start-ups. And to preserve its competitive edge, Google has kept its ownership bets in those start-ups secret.

Recently, court documents received by The New York Times reveals Google’s stake in one of those start-ups, anthropic, as well as how to change its investment in a youth company.

Google owns 14 percent of anthropic, according to legal filing that AI Start-up was presented as part of the Google antitrust case. But this investment gives Google little control over the company. According to the filing, the Internet giant can only be the owner of anthropic from 15 percent to anthropic, and Google has no voting rights, no board seats and start-ups have no board observer rights.

Nevertheless, Google is ready to invest an additional $ 750 million in anthropic in September, known as convertible debt through a type of loan, known as convertible debt. Companies agreed to convertible notes in 2023. Overall, Google has invested more than $ 3 billion in the AI ​​company.

A large technology in AI Start-Up provides a rare glimpse in the company’s investment. Such investments have been investigated by regulators, who questioned whether deals gave an unfair advantage in rapidly developed and powerful technology. Apart from Google, Amazon and Microsoft have also invested in the manufacturer of high-profile AI Start-ups such as anthropic and Openai, Chatgpt Chatbot.

An investor Chris V with Venture Capital firm Page One Ventures. Nicholson said, “A large company like Google knows that there is a race for AI, and it has a large sufficient cash pile that can bet on many horses.”

Anthropic filing emerged in a landmark Google Antitust case on online search. In August, a federal court found that Google had served as a monopoly in internet search violating the law.

To overcome the situation, the Department of Justice, which brought the case against Google, proposed that the court forced the Silicon Valley Company to sell any AI products that could compete with search. This may include Google’s stake in anthropic, which creates a chatbot called Cloud that people can change for the search querry.

On Friday, the Department of Justice pulled back the proposal, arguing that Google should inform government officials before investing in AI.

Anthropic filed by the Justice Department before changing the syllabus by Anthropic. Public dock reduces filing. Anthropic’s law firm sent an unexpected copy of its filing to the Times, which has argued for more public access in the antitrust case.

In rejected filing, Anthropic stated that Google should not be forced to divide its stake in start-ups. Anthropic lawyers wrote, “The youth will cause more damage to both anthropic and competition by disappointing the market value of the company and obstructing their capacity to raise capital.

Tom Brown, an anthropic co-founder, said that if Google was forced to make their relationship serious, the start-up would be “serious damage”.

Google refused to comment on the financial terms of its anthropic share. It said that it has invested equity in many companies to return and increase the market. Anthropic refused to comment.

Anthropic was founded in 2021 by Dario Amodi and his sister Daniela Amodi, who left OpenaiI after disagreeing on how its technologies were being funded and released via Microsoft. He created anthropic to build AI with security railings, and structured the company as a public advantage corporation, aimed at making public and social good.

(The Times filed a case against Openai and Microsoft, accusing them of violating copyright violations of news material related to the AI ​​system. Openai and Microsoft denied those claims.)

Anthropic has worked to ensure that according to court filing, this single technology is not owned or dominated by veterans. Overall, the company has raised more than $ 14.8 billion from venture capital firms such as Menlon Ventures.

In 2023, Google invested over $ 2 billion in anthropic. The same year, Amazon invested $ 4 billion in anthropic, followed by $ 4 billion additional last year.

Today, Google’s investment in anthropic is more “significant amount” than the latest funding round of start-up, which closed this month, which was closed according to court filing. Financing was a price of $ 61.5 billion.

Anthropic buys a large amount of computing power from Google and Amazon to manufacture its AI system and has agreed to use chips and cloud computing services from some companies investing in it. Effectively means that some of the funds raised by it are pumped back to their investors.