Anthropic Gains Big With Google Backing, Aims for $60 Billion Valuation and Surging AI Revenue

Comments
Loading...
Zinger Key Points
  • Google invests over $1 billion in OpenAI rival Anthropic, intensifying competition with Microsoft, Meta, and Amazon.
  • Anthropic's valuation may triple to $60 billion as it secures more funding, with annualized revenue hitting $1 billion in December.
  • Get Wall Street's Hottest Chart Every Morning

Alphabet Inc’s GOOG GOOGL Google earmarked over $1 billion investment into OpenAI rival Anthropic, intensifying its rivalry with Microsoft Corp MSFT, Meta Platforms Inc META and Amazon.Com Inc AMZN.

In 2023, Google committed up to $2 billion to the Microsoft-backed OpenAI rival, Financial Times reports, citing unnamed sources familiar with the matter. The new tranche of money from Google into Anthropic adds to Amazon’s total investment of $8 billion.

Also Read: Apple’s iPhone Dependence Remains, But Services, Wearables Offer Growth Potential: Analyst

Google invented the technology on which Anthropic’s Claude and OpenAI’s GPT4 models are built.

Anthropic was also on the verge of securing a further $2 billion from Silicon Valley venture capital investors in a deal likely to triple the start-up’s valuation to about $60 billion, Financial Times cites unnamed sources familiar with the deal.

Like Meta and Microsoft, OpenAI and Elon Musk’s xAI raised over $10 billion in 2024.

According to Financial Times, Anthropic’s revenue hit an annualized $1 billion in December, up roughly 10 times on a year earlier.

Prior reports indicated that OpenAI, worth $157 billion, will be restructuring its non-profit structure into a public benefit corporation in 2025 as developing large-scale language models requires substantial investments.

In related news, on Tuesday, OpenAI, SoftBank SFTBF SFTBY, and Oracle Corp ORCL introduced a $500 billion joint venture, Stargate, to build AI infrastructure in the U.S. Stargate’s debut project will focus on creating a large-scale data center in Texas, with plans to expand to other states. 

Also, in January, Microsoft launched its CoreAI division to streamline AI tools and build AI apps. The company committed $80 billion for AI-driven data centers.

Price Action: GOOGL stock is up 0.38% at $200.39 premarket at the last check on Wednesday.

Also Read:

Photo courtesy: Shutterstock

Market News and Data brought to you by Benzinga APIs

Posted In:
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!