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In a strategic move to maintain its lead in the AI race, Google has quietly invested over $3 billion in the AI startup Anthropic, holding a 14% stake in the company, according to recent legal filings obtained by The New York Times. This marks a significant step for Google, which has kept its financial dealings in the AI space largely confidential.
The filings, part of a Google antitrust case, reveal that the tech giant’s investment includes a $750 million loan through convertible debt, expected to be finalized by September 2025. Despite owning a substantial portion of Anthropic, Google holds no voting rights or board seats at the startup, limiting its control despite the sizable financial commitment.
The move highlights the competitive nature of AI development, with companies like Google, Amazon, and Microsoft all vying for influence in this rapidly evolving industry. Regulatory scrutiny over such investments has increased, with concerns about unfair advantages in the burgeoning AI market.
By Ruvarashe Gora
As Google continues to invest heavily in startups like Anthropic, the company faces scrutiny from regulators, particularly following a federal court ruling in 2024 that found Google guilty of monopolistic practices in online search. The Justice Department had proposed requiring Google to divest from AI firms like Anthropic, but recently withdrew this demand, opting instead for a policy that requires Google to notify officials before making such investments.
This investment is part of Google’s broader strategy to ensure its dominance in the AI sector, with experts noting that the tech giant is betting on several promising startups to stay ahead in the competitive race for AI innovation.
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