Google’s Secret AI Takeover? Inside Its $3 Billion Deal with Anthropic
Google’s Secret Investment in AI Startup Anthropic Revealed
Google’s Multi-Billion Dollar Bet on Anthropic
Google is making big moves in the artificial intelligence (AI) space, not just by developing its own technology but by investing heavily in AI startups. One of its key bets is Anthropic, a high-profile AI company. According to legal filings obtained by The New York Times, Google owns a 14% stake in Anthropic—an investment it had previously kept under wraps.
Google’s Stake in Anthropic: What We Know
The court documents reveal that Google’s investment in Anthropic is significant but limited in control. Here are the key details:
- Ownership: Google owns 14% of Anthropic and is capped at a maximum of 15%.
- No Control: Despite its stake, Google has no voting rights, no board seats, and no observer positions at Anthropic.
- Future Investment: Google is set to invest an additional $750 million in September 2025 through convertible debt.
- Total Investment: Google has poured over $3 billion into Anthropic so far.
Why Is Google Investing in AI Startups?
Google’s investment strategy aligns with its goal of staying ahead in the AI race. By backing Anthropic, the tech giant secures influence in cutting-edge AI development while mitigating risks if its own AI projects don’t dominate the market. Chris V. Nicholson, an AI-focused investor at Page One Ventures, explains, “Google knows there is a race in AI, and it has the resources to bet on multiple horses.”
The Regulatory Scrutiny on AI Investments
Big Tech’s involvement in AI startups has raised concerns among regulators. Companies like Google, Microsoft, and Amazon have been heavily investing in AI firms like OpenAI and Anthropic, leading to antitrust scrutiny.
Google’s AI Investments in Court
Google’s stake in Anthropic came to light due to an ongoing antitrust lawsuit. In August, a federal court ruled that Google violated antitrust laws by monopolizing internet search. The U.S. Department of Justice (DOJ) initially proposed forcing Google to divest its AI investments that could compete with search. However, regulators have now revised their approach, requiring Google to notify officials before making future AI investments rather than forcing it to sell its stake in Anthropic.
The Bigger Picture: AI Power Struggle
Google is not alone in backing AI startups. Other tech giants are making similar moves:
- Microsoft has invested billions into OpenAI, the company behind ChatGPT.
- Amazon has also funneled major investments into Anthropic.
These partnerships blur the lines between competition and collaboration, raising questions about the future of AI development and control.
What’s Next for Google and Anthropic?
With an additional $750 million investment coming in September, Google is doubling down on Anthropic. The AI company continues to make strides in research, particularly in understanding and preventing the misuse of large language models. Meanwhile, regulators remain watchful of Big Tech’s expanding influence in the AI industry.
As the battle for AI dominance continues, Google’s multi-billion-dollar bet on Anthropic underscores its commitment to shaping the future of artificial intelligence.