Google is set to invest over $1 billion into AI startup Anthropic, according to a report from the Financial Times on Wednesday. This move follows earlier reports from Reuters and other outlets in January, which stated that Anthropic was close to raising $2 billion in a funding round led by Lightspeed Venture Partners, valuing the company at approximately $60 billion.

The Financial Times clarified that Google's investment is separate from the Lightspeed-led funding round. Anthropic, a major rival to OpenAI in the field of AI foundation models, chose not to comment on the news, and Google did not respond to requests for a statement outside of business hours.

Google has already committed $2 billion to Anthropic, while Amazon increased its investment in the company to $8 billion late last year. Anthropic, which generates around $875 million in annual revenue, sells access to its models both directly and through third-party cloud providers, including Amazon Web Services. Developing large language models is costly, requiring significant computing power and top-tier talent.

OpenAI, backed by Microsoft, sparked an AI race with the release of ChatGPT in November 2022. The company's rapid growth and new product launches helped it secure $6.6 billion in funding in October, potentially bringing its valuation to $157 billion.

Disclaimer: This image is taken from Bloomberg