I hope you had a good start to trading week and you’re ready for the latest developments in the stock market. On Friday, October 27, Google announced it will be investing up to two billion US dollars in the promising AI startup Anthropic. But what is behind this decision and what effects could it have on the market? Let’s dive into the details together.

Claude 2 – The Chatbot with Self-Awareness Anthropic is the company behind „Claude 2“, a chatbot that is developing into a serious competitor for OpenAI’s ChatGPT. Claude 2 has the remarkable ability to summarize up to 75,000 words, while OpenAI’s ChatGPT can only process about 3,000 words. Companies such as Slack, Notion and Quora are already actively using the tool. According to a study by Arthur AI, Claude 2 is considered the most reliable chatbot in terms of self-awareness. It knows exactly what it knows and what it doesn’t, and only answers questions for which it has training data.

Six-Month Chart for Alphabet The parent company of Google Alphabet is quoted above the red curved 200-day line and takes aim at the blue curved 50-day line. (Source: Stock Screener)

Largest Financing Round Since Microsoft’s Investment in OpenAI Google’s investment in Anthropic is not the first engagement of the company. Already in April, Google invested 300 million US dollars and acquired a 10 percent stake. In May, an impressive financing round of 450 million US dollars followed, which was referred to as the largest for an AI company since Microsoft’s investment in OpenAI in January. Anthropic has invested heavily in the development of Claude 2 and emphasizes the diversity and growth potential in the current market environment.

New Horizons for AI Developments This investment by Google underscores the growing importance of AI in the tech space. Anthropic and its chatbot Claude 2 have established themselves as important players. The dynamics of the market promise exciting developments and provide room for different users and user types.