Amazon is doubling down on artificial intelligence by investing an additional $4 billion in San Francisco-based startup Anthropic.
The deal, announced Friday, brings Amazon’s total commitment to $8 billion in just over a year.
Anthropic, a competitor to OpenAI and Google, develops basic AI models that power advanced systems such as chatbots and automation tools.
This deepened partnership reinforces Amazon’s position in AI innovation and integrates its cloud computing arm, Amazon Web Services (AWS), as Anthropic’s “primary training partner.”
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As part of the deal, Anthropic will rely on AWS-designed chips and data centers to train and deploy its AI systems.
These core models are the engines behind universal AI tools, including Cloud, Anthropic’s competitor to ChatGPT and Bard.
Claude is designed to engage in detailed conversations, summarize text, analyze information, assist with programming, and provide other computational support.
“We’ve been impressed by Anthropic’s pace of innovation and commitment to the responsible development of generative artificial intelligence, and we look forward to deepening our collaboration,” AWS CEO Matt Garman said in a statement.
Companies using Anthropic’s advanced generative artificial intelligence through AWS include DoorDash, GoDaddy, Pfizer, T-Mobile and Zendesk.
The partnership offers Amazon more than just access to Anthropic’s new technologies. Using AWS servers ensures that some of Anthropic’s operating costs flow back to Amazon, strengthening its competitiveness in cloud computing while positioning it to challenge AI chip leader Nvidia.
What drives investment? Rivalry
The generative artificial intelligence landscape is crowded, with global tech giants vying for dominance. OpenAI, which secured $6.6 billion in funding in October, now boasts a $157 billion valuation. Meanwhile, Elon Musk’s xAI is seeking investment that could push its valuation to $40 billion.
Amazon’s partnership with Anthropic reflects a commitment to outperform its rivals.
However, the profitability of such ventures remains a critical issue, especially for smaller AI firms unable to keep up with the pace of investment.
Many of them have acquired industry heavyweights such as Google and Microsoft.
Antropic says it’s doing things differently by building advanced AI tools while addressing security issues that could prevent misuse or harmful outcomes.
Amazon Collaboration “Instrumental,” says Anthropic CEO
The influx of capital into AI startups has also drawn attention from regulators, who are watching whether such deals stifle competition.
In September, the UK’s Competition and Markets Authority reviewed Amazon’s ties to Anthropic, but concluded that their combined market share did not warrant further investigation under merger rules.
DeDario Amodei, co-founder and CEO of Anthropic, recently praised Claude’s “breakthrough year of growth.” He previously held senior positions at OpenAI.
“Our collaboration with Amazon has been critical in making Claude’s capabilities available to millions of end users across tens of thousands of customers,” he said. “We look forward to working with Amazon to train and strengthen our most advanced AI model.”
This article includes reporting from The Associated Press.
