Anthropic, a startup based in San Francisco, has been perceived as a standalone entity in the AI landscape, but it has been revealed that the company has stronger connections to Google than initially thought. According to court documents obtained by The New York Times, Google holds a 14% stake in Anthropic and is expected to invest an additional $750 million in the company this year through a convertible debt agreement, bringing its total investment to over $3 billion.

Although Google does not have voting rights, board representation, or direct control over Anthropic, its significant investment raises concerns about the company’s independence. As AI startups increasingly rely on funding from major tech companies, regulators have been examining whether these deals provide established players with an unfair advantage. However, the Justice Department has recently abandoned a proposal that would have required the sale of some of these stakes.

Google’s strategy of developing its own technology while secretly investing in competitors is a clear attempt to diversify its portfolio. Meanwhile, with Amazon also investing in Anthropic, having agreed to provide up to $8 billion in funding, it is natural to question the implications of such ties for Anthropic and other prominent AI startups. Are they still innovators or are they becoming subsidiaries of Big Tech?

Above: Anthropic co-founder and CEO Dario Amodei speaking at Viva Technology in Paris.