Amazon Earmarks $4 Billion for AI Startup Anthropic, Acquires Minority Stake

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Amazon Earmarks $4 Billion for AI Startup Anthropic, Acquires Minority Stake
Credit: © Reuters.

Amazon (NASDAQ: AMZN ), the technology giant, announced on Monday a significant investment of up to $4 billion in artificial intelligence (AI) startup Anthropic. This strategic move is seen as Amazon's effort to maintain competitiveness with other tech giants in the rapidly evolving AI sector.

Anthropic, founded in 2021 by Dario and Daniela Amodei, former employees of OpenAI, recently launched its AI assistant named Claude. This new product is viewed as a competitor to ChatGPT, a creation of OpenAI.

In addition to the financial investment, the deal also includes Amazon acquiring a minority stake in Anthropic. Moreover, Amazon's cloud customers are set to gain early access to Anthropic's technology through Amazon Bedrock, the company's AI platform for businesses.

Amazon confirmed that Anthropic would leverage Amazon Web Services (AWS) proprietary chips to develop, train, and deploy its AI software. AWS will serve as the primary cloud provider for Anthropic.

This investment echoes similar strategies adopted by other tech titans such as Microsoft (NASDAQ: MSFT ) and Google (NASDAQ: GOOGL ). Over several years, Microsoft has invested multi-billion dollars in OpenAI. Google is also an investor in Anthropic, further highlighting the competitive race for AI dominance.

The rapid growth of the AI industry is unmistakable and Amazon's hefty investment in Anthropic underscores its resolve not to be left behind by competitors like Microsoft. This move represents another step in Amazon's continuous expansion into the increasingly competitive AI sector.

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