Google Invests An Additional $1 Billion In Anthropic To Enhance AI Capabilities

A New York Times report revealed that the tech giant Google owns 14% of the startup Anthropic and has invested over $3 billion in the company—and plans to invest an additional $750 million through convertible debt in September.

Google has been developing its own generative AI technologies while also investing in promising AI companies such as Anthropic to stay ahead in the AI race. However, the company is under investigation by the U.S. Department of Justice (DOJ) for alleged antitrust violations and has been required to submit documentation and files for the case.

The New York Times got access to legal filings, revealing the giant’s strategies to gain leverage in the market. Google’s investments have been under evaluation to determine whether the company has been using its power to take advantage of the market.

“A big company like Google knows that there is a race to A.I., and it has a big enough cash pile that it can bet on multiple horses,” said Chris V. Nicholson, an investor with the venture capital firm Page One Ventures who focuses on A.I. technologies, to the New York Times.

While Google doesn’t have much control over Anthropic—and cannot surpass a 15% ownership—it is still willing to keep investing. According to the documents reviewed by the journal, both companies have made multiple agreements, including a 2023 agreement of a $2 billion investment.

Amazon and Microsoft have also invested in the AI company. In 2023, Amazon invested $4 billion in Anthropic—founded in 2021—and an additional $4 billion in 2024. At the same time, the AI startup purchases computing power from Amazon and Google for its AI models. Anthropic raised $3.5 billion in its latest funding round and is currently valued at $61.5 billion.