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Google and AI startup Anthropic are in talks over a cloud deal reportedly worth tens of billions of dollars. This marks a major step in AI infrastructure growth, according to Bloomberg News. The rumored cloud partnership between Anthropic and Google highlights the rising demand for computing power in the AI industry.
Anthropic, supported by huge investments from Google and Amazon.com, created the Claude chatbot and competes with OpenAI's ChatGPT for AI dominance. The deal, which has not been finalized yet, reportedly includes Alphabet's Google providing cloud computing services to Anthropic. Both companies declined to comment on the deal talks.
Google parent Alphabet Inc. witnessed a jump of 3.1% in after-hours trade following the news. This shows how closely the market is watching the growth opportunities in the cloud market. The tech giant, which has already invested approximately $3 billion in Anthropic, serves as both an investor and a cloud provider for the AI startup.
A potential Anthropic-Google partnership would solidify Google Cloud’s place in the AI spotlight. Meanwhile, Amazon.com Inc. has also invested billions in the AI firm and provided computing resources to it.
Founded in 2021 by former OpenAI employees, Anthropic is currently focused on AI safety, while competing with OpenAI’s GPT models. The San Francisco-based firm has been raising substantial funding to advance its AI technology.
According to early projections by Reuters, Anthropic will double and potentially nearly triple its annualized revenue run rate next year. This is driven by the rapid adoption of its enterprise products.
The company is expected to meet an internal goal of $9 billion in annual revenue run rate, a calculation of annual revenue extrapolated from the current sales pace, by the end of 2025.
Also Read: Claude Vs. ChatGPT: Know the Difference
Anthropic has been raising a substantial amount of funds to keep pace with the intense competition in advancing AI technology. However, industry experts believe that the company requires more resources for research. They state that it needs the implementation of new ideas and growing consumer interest to solidify its position as a leader in AI.
With tech giants supporting top startups, these high-stakes deals are setting the stage for a revolution in the technology landscape that might experience significant changes in the coming years.
