Amazon’s Massive $4 Billion Investment in Anthropic, the Competitor of OpenAI’s ChatGPT Developer

The regulator was concerned with Amazon’s dual role as both a marketplace and a competitor to merchants selling on its platform.

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E-commerce giant Amazon announced a major investment in the artificial intelligence company Anthropic, committing up to $4 billion and taking a minority ownership position.

Amazon’s move highlights its aggressive push into AI, as it competes with industry leaders like Microsoft and Alphabet’s Google.

Anthropic, created by former Google research executives, recently launched its AI chatbot called Claude 2.

In an effort to capitalize on the potential of generative AI, including technologies like OpenAI’s ChatGPT, Amazon aims to collaborate with Anthropic to advance generative AI. As part of the collaboration, Anthropic has selected Amazon Web Services (AWS) as its primary cloud provider, granting early access to unique features for model customization and fine-tuning capabilities.

Furthermore, Anthropic plans to leverage custom AWS-designed semiconductors to train its AI applications’ foundational models, which are large programs trained on extensive data to solve various tasks.

Nvidia has experienced significant gains from the generative AI boom, with its graphics processing units used for training large AI models. Amazon’s partnership with Anthropic aims to showcase alternative chips for AI applications.

AWS customers will have the opportunity to utilize Anthropic’s AI models through Amazon Bedrock, a service that allows the development of generative AI applications using existing models on the cloud instead of training new ones.

Amazon seeks to establish itself as the go-to platform for AI, offering its own chips for training AI models. With Amazon Bedrock, customers can also create their own generative AI applications using existing models, all hosted on the Amazon cloud. Additionally, the company sells its own AI applications.

Anthropic already boasts prominent backers, including Google and Salesforce Ventures. This support reflects the tech giants’ substantial investments in AI companies, following Microsoft’s multi-billion dollar investment in OpenAI, the creator of ChatGPT, earlier this year.

Reference

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