How Google's $300 million investment in ChatGPT's rival Anthropic could set up a new rivalry with Microsoft

Google's investment in Anthropic is seen by many as the company's counter to Microsoft's ChatGPT investment. This won't be the first time the two technology giants have bumped heads. There has been intense competition in a space where consumers have a lot of innovation.

Competition in technology is always a good thing, as consumers can benefit significantly from it. However, the latest round of investments could have significant ramifications in the coming years. On the face of it, the two investments are different due to the sheer difference in the numbers.

Google's investment in Anthropic, reportedly at $300 million, is minuscule compared to what Microsoft has invested in Open AI. ChatGPT received an initial one billion in funding, reportedly increasing by 10. The two investments are also at different stages, and the latter has already established itself as a front-runner in the technology space. However, the backdrop appears very interesting when one needs to remember the numbers.

---

Google's Anthropic investment could match Microsoft's ChatGPT deal soon

AI is still a space that's seen as a futuristic sci-fi concept. Futuristic, it may be, but the use of AI technology is no longer a thing of fiction, and some amazing developments have taken place in recent times. The potential is endless, from creating artwork to helping students with their writing assignments.

Microsoft was one of the earliest to take note of the potential and how they could benefit from it. What followed was an enormous investment in Open AI, the developers of ChatGPT. Since then, a bigger round of funding has followed between the two.

Google has been relatively slower, but it now has an able partner in Anthropic, which contains several former employees of Open AI. Some sources have reported that the invested amount is almost close to $400 million, but it's a small one compared to the one invested by Microsoft. However, one thing is certain - the old rivalry is taking a new shape.

---

What's in it for Microsoft?

Open AI isn't just about ChatGPT; it is their most popular product. The AI-based tool can do plenty of tasks, and there's a free version available to any user. In addition, there have been reports that Microsoft plans to implement it with their Bing search engine.

This is one of many scenarios where the tech giants could benefit from their partnership with Open AI. Imagine the same tool being used in Office applications. There's already a third-party tool that allows ChatGPT in MS Word, and more are coming along the way. An official implementation will certainly be an easier one for users to utilize.

There's also an aspect of cloud-based solutions, as Open AI has been utilizing the Azure servers. This could be used to push out applications across a wider sphere, benefiting everyone from students to working professionals.

---

What's in it for Google?

As mentioned at the very start, Google has been a competitor of Microsoft since the very beginning. It has several similar products - Docs vs. Word, Sheets vs. Excel, Drive vs. OneDrive, and more.

It even has its very own Google Search, arguably the most widely used search engine in the world. With Anthropic, the tech giant could have many benefits without needing Open AI.

With Anthropic, Google also gets its hands on a team that has previously worked on Open AI. Naturally, there's plenty of experience, and they even have their assistant in Claude. It's currently in closed beta but could open soon, and Anthropic hopes it will go big.

---

How could the rivalry evolve?

Microsoft has had an early start to the proceedings, which has resulted in earlier and larger investments. Open AI has also made the most of such investments, allowing them to expand their ChatGPT aggressively.

Irrespective of which services are being discussed, the end goal of Microsoft and Google will be the same. Both own a host of user-ended software applications that also have their enterprise versions. These investments are more towards ensuring more efficiency and greater capabilities from the products in the coming days.

Implementation will be key since it will increase or decrease the scope. Be it ChatGPT or Anthropic, they're still in their early stages and much remains to be done over the next few months or maybe years.

However, the dice roll was made early as the two technology powerhouses warmed up to new battlegrounds. Both have contested hard-fought battles across other remains and domains. How these latest investments will shape up the new competition is something that will be quite interesting to find out.