Google Invests $300 Million In AI Company That Was Previously Backed By Sam Bankman-Fried

According to Financial Times on February 4, Google Cloud has invested $300 million into AI startup Anthropic. The company had previously received over $500 million in funds from Sam Bankman-Fried, the former CEO of FTX, about six months before FTX’s collapse.

Anthropic confirmed the partnership with Google Cloud on the same day, but did not reveal any specific figures.

According to Crunchbase, the fundraising effort led by Bankman-Fried took place in April 2022. The New York Times reported that of the $580 million raised, approximately $530 million came from Bankman-Fried and his former business associates. However, some speculate the figure could be even higher. 

One FTX creditor thinks Bankman-Fried’s investment in Anthropic could reach $1.1 billion, but did not provide additional details. There is speculation among members of the Crypto Twitter community that the funds will be used to pay off FTX’s debt from recent controversies.

As a result of the partnership, Anthropic will now use Google Cloud’s GPU and TPU clusters to train and expand its AI chatbot, named “Claude,” which is similar to OpenAI’s ChatGPT. Financial Times reported that Google Cloud received a 10% stake in Anthropic. 

The source of the debt in the FTX bankruptcy case is yet to be determined, but Bankman-Fried has personally pleaded not guilty to the eight charges of fraud and conspiracy against him on January 3. Bankman-Fried is currently under house arrest at his parents’ home in California until his trial on October 2, 2023.