Amazon is making a significant step in the field of artificial intelligence (AI) by investing up to $4 billion in the well-known startup Anthropic, reports Reuters. This strategic investment is aimed at strengthening Amazon’s position in the AI race, especially in the face of fierce competition among cloud computing providers.
As part of the agreement, Amazon employees and customers of its cloud services will be among the first to have access to Anthropic’s technologies. This early access will allow them to integrate Anthropic’s capabilities into their products.
In addition, Anthropic has promised to primarily use Amazon’s cloud services, which includes training its future artificial intelligence models using the huge number of chips purchased from Amazon.
Amazon’s initial investment is $1.25 billion. However, either Amazon or Anthropic may initiate additional funding of $2.75 billion, which would increase the total investment. Details regarding Amazon’s share in Anthropic and the revised valuation of the startup, which was previously estimated at more than $4 billion, were not disclosed. It has been clarified that Amazon will not receive a seat on the board of directors and will have only a minority stake in Anthropic.
This collaboration is seen as Amazon’s response to the challenges posed by Microsoft and Google. Both of these tech giants have either launched or implemented AI solutions this year. The partnership also underscores the cloud companies’ ongoing efforts to build strong alliances with AI startups.
Anthropic, co-founded by former OpenAI executives, is known for its work in the field of generative AI. This technology allows creating content that looks like it was created by a human. The company is unique in its approach, teaching AI to adhere to ethical standards.
Despite the new partnership with Amazon, Anthropic will continue its existing agreement with Google, which was announced earlier in February. According to the agreement, Anthropic uses Google’s own chips and plans to offer its technology through Google Cloud and other platforms.
One of Anthropic’s main products is Claude 2, an artificial intelligence model that can respond to detailed cues. This ability allows it to analyze long business or legal documents. The collaboration aims to expand the use of Claude 2 in enterprises, as it is in high demand on the Amazon Bedrock platform.
Several companies, including LexisNexis, Bridgewater Associates, and Lonely Planet, are already working with Anthropic and Amazon. For example, LexisNexis is using this partnership to expand its legal search capabilities.
Although Anthropic is making progress in the field of artificial intelligence, the startup still lags behind OpenAI in terms of recognition and usage.