Google Invests $2B in Anthropic to Compete with Microsoft's OpenAI Bet

Google reportedly investing $2B in Anthropic, an AI startup, to compete with Microsoft's investment in OpenAI.

The funding comes as tech giants engage in a proxy war, unable to build their own AI capabilities so they invest in startups instead.

Anthropic aiming to be an enterprise AI provider, focused on safety and transparency unlike consumer-focused OpenAI.

Billions are needed to train ever-larger AI models that quickly become outdated, driving an arms race in spending.

Google, Microsoft, Amazon cannot yet stand alone in AI so they fund startups Anthropic and OpenAI as proxies against each other.