Google May Still Buy $183 Billion Anthropic Cloud Company
Alphabet may be looking to acquire cloud computing company Anthropic in the near future to boost its AI prospects.
Quick overview
- Google is considering a potential acquisition of Anthropic to strengthen its position in the AI market against competitors like OpenAI.
- Anthropic, valued at $183 billion after raising $13 billion, is a direct rival to OpenAI and has its own chatbot named Claude.
- The deal's nature and cost remain uncertain, and both companies have not publicly confirmed any buyout discussions.
- Alphabet's stock has seen a slight increase, coinciding with a crucial week for tech earnings reports.
The AI market is still a niche where billion dollar deals are taking place, and one of the biggest potential deals is between Google (GOOG) and Anthropic.
Google has not confirmed that they will buy Anthropic yet, but reports continue to circulate that the company will purchase the cloud computing business to help solidify their position in the AI market against OpenAI. Google’s parent company Alphabet has already invested more than $1 billion into the company.
Anthropic is now worth $183 billion after they raised $13 billion to grow their business. Anthropic is a direct rival to the OpenAI service and has their own chatbot named Claude. If Anthropic and Google team up, then the cloud computing company could speed up its generative AI program thanks to the powerful tensor processing chips that Google owns.
Why This Deal Matters
As valuable as Anthropic is, they are not yet a publicly traded company. If they do go public, there may be less incentive for them to accept a buyout deal by Alphabet or another company. Because Google has already invested so much into the company, the two entities have a working relationship and Alphabet has an interest in what happens to Anthropic.
OpenAI may not be quick to acquire Anthropic since that could cause a stir with antitrust regulatory bodies. If Alphabet can build up a strong competitor to OpenAI, then they could secure their future in the AI niche at an early stage. In the next five years, the AI landscape will look completely different, and the companies that made smart investment decisions will be the ones that are still standing and competing.
Google will need to be able to stand up against rivals from Microsoft, Amazon, and more, and Anthropic could give them that edge. Nothing solid has emerged on these reports yet. The nature of a deal and how much it might cost are still factors that are not set in stone, and Anthropic and Alphabet are being very quiet about the matter right now. Neither company has announced anything publicly, so any reports on the potential buyout should be taken at least partially as speculation.
Alphabet (GOOG) stock is up 0.80% in early morning trading for Tuesday, and the company could benefit from the mass of tech stock earning statements this week. This is a crucial week for the tech market as many major companies are reporting their quarterly earnings.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save