Google’s involvement with San Francisco startup Anthropic is deeper than previously thought, as revealed by court documents cited by The New York Times. While Anthropic is often seen as an independent AI player, Google owns 14% of the company and plans to invest another $750 million this year through a convertible debt deal. This brings Google’s total investment in Anthropic to over $3 billion.
The Question of Independence
Despite lacking voting rights, board seats, or direct control, Google’s financial support raises concerns about Anthropic’s true independence. AI startups are increasingly backed by tech giants, leading regulators to investigate whether such funding arrangements create an unfair market advantage. The U.S. Justice Department has previously dismissed attempts to force companies to divest shares acquired through such deals.
Tech Giants and AI Investments
Google, which is developing its own AI projects, is also funding competitors, likely as a hedge against market shifts, adds NIXSOLUTIONS. This approach allows it to benefit regardless of which AI company gains dominance. Amazon, another major player, has invested $8 billion in Anthropic, adding to concerns about how these financial ties shape the AI landscape. Given these connections, it is becoming less clear whether startups like Anthropic remain truly independent or if they are gradually becoming extensions of larger corporations. We’ll keep you updated as more developments unfold.