So... What's all the buzz about?
Google has invested $300 million in Anthropic, a company in the generative AI space.
Google's investment gives it a 10% stake in the company and requires Anthropic to buy computing resources from Google Cloud.
The investment values Anthropic at around $5 billion.
The investment comes shortly after Microsoft's reported $10 billion investment in OpenAI, indicating a competitive race in the generative AI space between the two tech giants.
Anthropic, founded by former OpenAI employees, is developing its own chatbot, Claude, which could potentially rival ChatGPT.
The motivation for the investment may be to build up Google's cloud computing business.
Anthropic was founded after a disagreement over the direction of OpenAI, which has been criticized as increasingly reckless.
Google is holding an event on AI next week on February 8th.
Microsoft is likely to announce plans to add ChatGPT to Bing in the near future.