This article first appeared on GuruFocus.
Alphabet (NASDAQ:GOOG) shares rose about 2% after reports that the company plans to invest up to $40 billion in AI startup Anthropic, extending its role in the artificial intelligence race while also deepening ties with a key rival, according to a Friday report by Bloomberg.
Google said Anthropic will receive $10 billion in immediate funding in cash, while a further $30 billion would depend on performance milestones, valuing the startup at $350 billion based on recent financing terms, Google said in line with earlier valuation rounds.
Google said the funding would support expansion of computing capacity for AI model training, an area seen as critical as demand for data center infrastructure rises. The company continues to both compete and collaborate with Anthropic in developing advanced AI systems as firms race to scale compute resources.
