Amazon Invests $4 Billion In AI Startup Anthropic

Amazon is investing up to $4 billion in Anthropic, an artificial intelligence (AI) startup, and is acquiring a minority stake in the company, as announced by both firms on Monday, according to the Associated Press (AP).

Amazon's investment in Anthropic reflects its efforts to catch up with competitors like Microsoft, which invested $1 billion in OpenAI in 2019. I Photo: Anthropic X

This investment marks the beginning of a broader collaboration between Amazon and Anthropic to develop "foundation models," which are fundamental to the generative AI systems that have garnered global attention.

Foundation models, also known as large language models, are trained on extensive datasets of online information, including blog posts, digital books, scientific articles, and music lyrics, to generate text, images, and videos that resemble human work.

Under this agreement, Anthropic will make Amazon its primary cloud computing service provider and will utilize Amazon's custom chips for training and deploying its generative AI systems.

Anthropic, based in San Francisco, was established by former employees of OpenAI, the creator of the ChatGPT AI chatbot.

Anthropic has introduced its own ChatGPT competitor called Claude, with the latest version offering capabilities ranging from sophisticated dialogue and creative content generation to complex reasoning and detailed instruction.

Amazon's investment in Anthropic reflects its efforts to catch up with competitors like Microsoft, which invested $1 billion in OpenAI in 2019, followed by another multibillion-dollar investment earlier this year.

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