Google Bets $2 Billion, Inks Cloud Deal With Startup Anthropic

Google has committed to invest $2 billion in the artificial intelligence company Anthropic, solidifying its relationship with the startup darling and stoking the Silicon Valley frenzy for AI.

The deal is structured as a convertible note, a type of debt that will convert to equity at the startup’s next funding round, an Anthropic spokesperson confirmed. The deal closely follows another large convertible note investment into Anthropic from Amazon.com Inc. for up to $4 billion earlier this year.

With the latest financing, Alphabet Inc.’s Google invested $500 million with a commitment to add $1.5 billion more in the future, according ...