Amazon is doubling its efforts in the field of artificial intelligence by investing an additional $4 billion in San Francisco-based startup Anthropic.
The deal, announced Friday, brings Amazon’s total commitment to $8 billion in just over a year.
Anthropic, a competitor to OpenAI and Google, develops foundational AI models that drive advanced systems such as chatbots and automation tools.
This deep partnership amplifies Amazon’s position in AI innovation and integrates its cloud computing arm, Amazon Web Services (AWS), as Anthropic’s “primary training partner.”
Amazon has rolled out new services to keep up with the AI arms race this year, including updates to its popular Alexa assistant so users can have more human-like conversations and user-generated product review summaries. AI for consumers.
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Does Anthropic stand out in the development of AI in 2024?
As part of the deal, Anthropic will rely on chips and data centers designed by AWS to train and deploy its AI systems.
These fundamental models are the driving forces behind general-purpose AI tools, including Claude, Anthropic’s competitor from ChatGPT and Bard.
Claude is built to engage in detailed conversations, summarize text, analyze information, assist with programming, and provide other computing support.
“We have been impressed by Anthropic’s pace of innovation and commitment to the responsible development of generative AI, and we look forward to deepening our collaboration,” said Matt Garman, CEO of AWS, in a press release.
Companies using Anthropic’s advanced generative AI through AWS include DoorDash, GoDaddy, Pfizer, T-Mobile and Zendesk.
This partnership offers Amazon much more than just entry into Anthropic’s new technologies. Using AWS servers ensures that a portion of Anthropic’s operational costs go to Amazon, strengthening its competitiveness in cloud computing while positioning it as a challenger to Nvidia, a leader in AI chip manufacturing.
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What drives investment? Rivalries
The generative AI landscape is saturated, with global tech giants vying for dominance. OpenAI, which secured $6.6 billion in funding in October, now has a valuation of $157 billion. Meanwhile, Elon Musk’s xAI is seeking investments that could boost its valuation to $40 billion.
Amazon’s partnership with Anthropic reflects a commitment to getting ahead of its competitors.
However, the profitability of such companies remains a major concern, especially for smaller AI companies unable to keep up with the pace of investment.
Many of them have been acquired by industry heavyweights like Google and Microsoft.
Anthropic claims to do things differently by creating advanced AI tools while addressing security concerns that could prevent misuse or harmful outcomes.
Collaboration with Amazon is ‘instrumental,’ says Anthropic CEO
The influx of capital into AI startups has also attracted the attention of regulators who are monitoring whether such deals stifle competition.
In September, the UK’s Competition and Markets Authority examined Amazon’s links to Anthropic, but concluded that their combined market share did not warrant further investigation under merger rules.
DeDario Amodei, co-founder and chief executive officer of Anthropic, recently praised Claude’s “year of meteoric growth.” He previously held senior positions at OpenAI.
“Our collaboration with Amazon has been instrumental in bringing Claude’s capabilities to millions of end users across tens of thousands of customers,” he said. “We look forward to working with Amazon to train and power our most advanced AI model.”
This article includes reporting from the Associated Press.