Google vs OpenAI: The Battle for Supremacy
As we’ve previously reported, Google initiated a $500 million investment in Anthropic, an AI startup based in California, with this being the initial portion of their commitment. According to sources cited by The Wall Street Journal, Google is prepared to extend its total investment in Anthropic to $2 billion.
On this page
Anthropic was founded two years ago by siblings Daniela and Dario Amodei. Both had previously worked at Sam Altman's OpenAI, with Dario serving as Vice President of Research. It's worth recalling that in 2019, OpenAI experienced a corporate scandal. According to Elon Musk, the company was initially conceived as an altruistic open-source AI project. However, it later received multi-billion dollar funding from Microsoft, became commercialized, and fell under the influence of Bill Gates. A faction of OpenAI’s staff opposed these changes and left the company, including the Amodei siblings.
As key contributors to the development of the well-known ChatGPT, the team is now applying their acquired expertise for the benefit of their own business. Anthropic is in the process of developing Claude, an AI chatbot. Claude operates similarly to ChatGPT, enabling users to ask questions and receive responses in a messaging format. During its closed beta-testing phase, the developers integrated Claude into Slack, and it has since become available on iOS, Android, and its official website.
Daniela and Dario Amedei parted ways with Sam Altman and established Anthropic Source: Forbes
As it appears, the battle among new AI startups for dominance is quickly evolving into a classic competition among tech giants. A timely investment can yield a lucrative return, a fact convincingly demonstrated by Microsoft's investments in OpenAI. However, replicating this feat is not straightforward, given that there are only a few AI startups on the market that match the level of Sam Altman’s creation. Yet, Anthropic truly stands out: both Google and Amazon have expressed their intention to invest in this main competitor of OpenAI. Furthermore, Amazon's investment could reach up to $4 billion!
The crucial point here is that their primary goal in generating revenue is not focused on user applications like ChatGPT. Instead, the real gold mine lies in AI solutions offered by cloud service providers. This assertion is supported by a recent report from Microsoft, which shows that the company’s revenue has increased by 13% compared to the same period in the previous year. Azure, their cloud service, has been the main engine driving this growth, with sales soaring by 29%. This platform hosts software from OpenAI, Meta Platforms, and other companies working in artificial intelligence. In turn, Google and Amazon need to have robust cloud services that can compete head-to-head with Microsoft's Azure. This imperative has led them to jointly invest in Anthropic. Whether this strategic move proves to be a winner, only time will tell.
The content on The Coinomist is for informational purposes only and should not be interpreted as financial advice. While we strive to provide accurate and up-to-date information, we do not guarantee the accuracy, completeness, or reliability of any content. Neither we accept liability for any errors or omissions in the information provided or for any financial losses incurred as a result of relying on this information. Actions based on this content are at your own risk. Always do your own research and consult a professional. See our Terms, Privacy Policy, and Disclaimers for more details.
Articles by this author
