Amazon is undertaking its most significant external investment to date in its thirty-year history, aiming to secure an advantage in the competition for artificial intelligence supremacy.
The tech giant announced its commitment to invest an additional $2.75 billion in Anthropic, a leading San Francisco-based startup specializing in generative artificial intelligence. Anthropic’s foundational model and chatbot, Claude, are recognized competitors to OpenAI and ChatGPT.
This latest investment follows an initial $1.25 billion injection made in September, with Amazon’s total investment potentially reaching $4 billion as per the previous announcement. Notably, Amazon will retain a minority stake in Anthropic without securing a board seat, based on the deal struck at the AI startup’s last valuation of $18.4 billion.
Anthropic has seen significant funding traction, with five funding rounds totaling approximately $7.3 billion over the past year. Founded by former executives and employees of OpenAI, the company’s product directly challenges ChatGPT across both enterprise and consumer markets.
The timing of Amazon’s investment coincides with the launch of Anthropic’s latest AI model suite, Claude 3, touted as its most rapid and robust to date. The company claims superior performance over industry benchmarks, including outperforming OpenAI’s GPT-4 and Google’s Gemini Ultra in various tests, such as undergraduate-level knowledge, graduate-level reasoning, and basic mathematics.
Swami Sivasubramanian, Vice President of Data and AI at AWS cloud provider, expressed excitement about the strategic collaboration with Anthropic, emphasizing the transformative potential of generative AI.
Amazon’s investment reflects the ongoing spending race among cloud providers to maintain leadership in AI technology. Moreover, this development follows recent updates to Anthropic’s capital structure, including FTX’s decision to sell the majority of its stake, as confirmed by bankruptcy filings.
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