Google Doubles Down on Anthropic Investment as AI Arms Race Escalates
Tech giant Google ramps up its stake in Anthropic—throwing fuel on the AI inferno.
Why? Because losing isn't an option when Microsoft's breathing down your neck with OpenAI.
Meanwhile, Wall Street shrugs: 'Another billion? Just add it to the tab.'
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The new investment could take several forms, such as a broader cloud partnership, a convertible note, or a new funding round expected early next year. The details of the investment size and potential co-investors remain unclear.
Google Deepens Its Ties with Anthropic
Google has already invested more than $3 billion in Anthropic, giving it about a 14% stake, according to earlier reports. The new talks suggest Google wants to build on that relationship as demand for AI chips and training power continues to rise.
This comes after Anthropic’s major cloud deal with Google in October, which gave the startup access to up to one million tensor processing units (TPUs) and more Google Cloud services. The deal, worth tens of billions of dollars, made Google a key partner in training Anthropic’s AI models and boosted its position in the growing AI infrastructure market.
Founded in 2021 by former OpenAI employees, Anthropic builds the Claude AI models and counts both Google and Amazon (AMZN) as major investors. As AI adoption spreads, stronger ties between Google and Anthropic could help both companies grow their presence in the next phase of the AI boom.
Is Google a Good Stock to Buy?
Google still holds the backing of the Street’s analysts, with a Strong Buy consensus rating. The average GOOGL stock price target stands at $309.76, implying a 8.95% upside from the current price.
