Amazon steps up AI race with up to $4 billion deal to invest in Anthropic

26/09/2023

Amazon.com has announced a significant investment of up to $4 billion in the startup Anthropic as part of its strategy to compete in the growing field of artificial intelligence within the cloud computing industry. This investment will grant Amazon’s employees and cloud customers early access to Anthropic’s technology, which they can integrate into their businesses. Additionally, Anthropic has committed to primarily using Amazon’s cloud services and purchasing proprietary chips from Amazon for training its future AI models. The initial investment is $1.25 billion, with the potential for another $2.75 billion in funding, although specific ownership details and valuation were not disclosed. This move represents Amazon’s response to challenges from cloud rivals like Microsoft and Google, who have been heavily investing in AI technologies.

Anthropic, founded by former executives from OpenAI, focuses on generative AI, enabling systems to generate content as if it were human-created while adhering to moral values. The startup had previously formed a partnership with Google but is now bolstering Amazon’s AI capabilities, particularly Amazon Bedrock, a service attracting numerous users interested in building AI applications. Amazon’s customers will gain early access to Anthropic’s features, allowing for customization of their AI. The collaboration aims to drive enterprise usage for Anthropic’s AI model, Claude 2, which excels at analyzing long business or legal documents. Amazon’s move reflects its strategy to offer a wide range of AI models and services to retain customers within its cloud ecosystem. The long-term outlook includes potential investments in additional AI startups.