(Reuters) -Google is making a fresh investment of more than $1 billion into AI startup Anthropic, the Financial Times reported on Wednesday.

This comes after Reuters and other media reported earlier in January that Anthropic was nearing a $2 billion fundraise in a round, led by Lightspeed Venture Partners, valuing the firm at about $60 billion.

The FT said that Google's new investment was separate from the Lightspeed funding round.

Anthropic, a major competitor of OpenAI in the AI foundation model space, declined to comment. Google did not immediately respond to a request for comment outside regular business hours.

Google already has an existing commitment of $2 billion in Anthropic, while e-commerce giant Amazon doubled its stake in the AI company to $8 billion late last year.

Anthropic, whose annualized revenue hit about $875 million, sells access to its models directly and through third-party cloud services including Amazon Web Services. The development of large language models requires expensive computing as well as top talent.

Microsoft-backed OpenAI triggered an AI arms race after it launched ChatGPT in November 2022. The growing popularity of the company and new product launches helped it close a $6.6 billion funding round in October, potentially taking its valuation to $157 billion.

(Reporting by Harshita Meenaktshi in Bengaluru; Editing by Sonia Cheema)