As it gets ready to raise the stakes in the AI battles, Amazon is planning to spend up to $4 billion on Anthropic, a major rival of OpenAI, the company that created ChatGPT.
Anthropic, a startup in AI, has received a $4 billion investment from Amazon, the company said on Monday.
Anthropic, a rival to OpenAI, is well known for its expansive Claude language model.
Amazon now has a stake in a key AI business that will compete with Microsoft and Google.
Amazon receives a small investment in Anthropic as part of the agreement, and the firm will use the AWS cloud and Trainium, a chip that was developed by Amazon specifically to compete with Nvidia’s processors and facilitate the development of AI models.
Former OpenAI staffers launched Anthropic, which describes itself as an “AI safety and research company,” in 2021.
It is the creator of Claude, an artificial intelligence assistant that it refers to as a “friendly, enthusiastic colleague or personal assistant” and which can reply to text inputs and commands more naturally than ChatGPT.
The Amazon investment highlights the ongoing AI warfare as big businesses stake bets on cutting-edge firms. While Microsoft is a significant investor in OpenAI, Google has also invested in investment in Anthropic. The advantage for startups is having access to pricey cloud infrastructure and computing while they develop new ideas.
According to Amazon, Anthropic’s technology will be available to AWS users, who will also get “early access to unique features” relating to customization and fine-tuning options.
According to Amazon CEO Andy Jassy, “We have great respect for Anthropic’s team and foundation models, and we believe we can help improve many customer experiences, over the short and long terms, through our deeper collaboration.”
Anthropic was said to have a valuation of $4.6 billion in June after financing $750 million. It was revealed earlier this year that $300 million came from Google.