After Amazon, Google doubles down on AI; set to invest 2 billion in OpenAI rival startup Anthropic

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ChatGPT maker OpenAI plans to start making its own AI chips. Here's why it's important The new Amazon investment is structured as a convertible note, a type of debt that can be converted into equity in the next round of funding, Bloomberg reported, citing Anthropic as its source. The report notes that Google has already invested $500 million in the company and has committed to investing a further $1.5 billion in the future.

Interestingly, prior to Google's latest round of investment in Anthropic, the tech giant had already signed a Google Cloud deal worth over $3 billion, the Wall Street Journal reported. Anthropic has also signed a multi-year deal with Google Cloud worth more than $3 billion, said a person familiar with the matter. The deal was signed a few months before the new investment.

Earlier, Amazon pledged to invest up to $4 billion in Anthropic as it seeks to compete with other cloud companies in AI. In a quarterly filing with the US Securities and Exchange Commission this week, quoted by Reuters, Amazon had detailed that it had invested $1.25 billion in the AI startup, which can be converted into equity, and its ability to invest $2.75 billion in a second note expires in the first quarter of 2024. Anthropic's founders, siblings Dario and Dniela Amodei, worked as engineers at OpenAI before launching their own company in 2021.