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Amazon invests 4 billion in Anthropic

Emre Çitak
Sep 26, 2023
Updated • Sep 26, 2023
Amazon
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Amazon has committed to investing up to $4 billion in Anthropic, an AI startup, intensifying its competition with tech giants like Microsoft, Meta, Google, and Nvidia in the rapidly growing AI sector, as Anthropic announced in a blog post yesterday.

The e-commerce giant will initially contribute $1.25 billion for a minority stake in Anthropic, which specializes in AI-powered text analysis, similar to Google's Bard and OpenAI's ChatGPT. Additionally, Amazon retains the option to increase its investment to the full $4 billion.

Anthropic, which also boasts Google as an investor, has ambitious plans to raise up to $5 billion over the next two years. Their goal is to develop a "frontier model" named "Claude-Next," ten times more powerful than today's leading AI systems. However, this endeavor necessitates an investment of one billion dollars over the next 18 months.

Amazon invests 4 billion to Anthropic
Amazon invests 4 billion in Anthropic - Image courtesy of Anthropic

How can Amazon and Anthropic benefit from this investment?

Amazon's involvement not only brings substantial financial backing but also provides Anthropic with access to computing power for AI model development and cloud customer outreach. Amazon Web Services (AWS) will become Anthropic's primary cloud provider for critical workloads, including safety research and future foundation model development.

Amazon's CEO, Andy Jassy, believes that this collaboration will enhance customer experiences through services like Amazon Bedrock and AWS Trainium, aiming to offer innovative AI applications and training capabilities.

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This strategic partnership empowers Amazon to strengthen its position in the fast-growing AI industry, while Anthropic continues its journey to advance AI safety and research. Both companies are committed to delivering cutting-edge AI technologies to organizations worldwide through Amazon's infrastructure.

Amazon invests 4 billion to Anthropic
Anthropic has raised $2.7 billion to date, with diverse investors - Image courtesy of Anthropic

All eyes are on Anthropic

Anthropic, backed by investors such as Spark Capital, Salesforce, Sound Ventures, Menlo Ventures, and Zoom, has already raised $2.7 billion. Although its valuation reached approximately $5 billion in May, the exact valuation following Amazon's investment remains undisclosed.

In the words of Anthropic's CEO, Dario Amodei, the future of AI is poised for extraordinary growth, making this investment a significant step forward in this technological frontier.

Featured image credit: Anthropic.

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