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The Tech Basic > News > Amazon will invest up to $4 billion in Anthropic, a rival AI company to ChatGPT.
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Amazon will invest up to $4 billion in Anthropic, a rival AI company to ChatGPT.

Jiayi Mingze
Last updated: 26 September 2023 03:30
Jiayi Mingze
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Artificial intelligence will be the talk of the future — at least for the next few years until something more surprising takes its place. Meanwhile, Amazon announced this Monday (25) that it will invest up to $4 billion in Anthropic, a rival of ChatGPT, which became famous for its chatbot Claude and also had former members of OpenAI as founders.

The agreement is smaller compared to the $13 billion that Microsoft has injected into OpenAI so far. However, it’s a sign of Amazon’s presence in this race for technology. The chatbot operates on the same generative AI principle as Bard or ChatGPT, capable of answering questions, translating texts, writing code, and more. Claude also claims to be able to handle larger requests, making it suitable for sifting through longer business or legal documents.

In return, Amazon will gain minority ownership of the company and has agreed to incorporate Anthropic’s technology into various products across its businesses, including the Amazon Bedrock service for building AI applications.

Anthropic will also have the option to use custom Amazon chips to build, train, and deploy its future AI models, in addition to using Amazon Web Services as its primary cloud provider.

The initial commitment from the big tech company is $1.25 billion, with the option to increase the investment by another $2.75 billion. If it reaches $4 billion, Bloomberg reports that this deal will represent the largest known investment related to AWS.

Meanwhile, Google also has an interest in Anthropic, with a roughly 10% stake following a $300 million investment in the AI startup earlier this year.

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Jiayi Mingze
By Jiayi Mingze
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Jiayi Mingze is blog writer who specializes in latest innovations in sound and headphones. She works for an IT firm and also writes for technology blogs. She started her writing career from newspapers. She is ambitious and hardworking woman who believes in excellence and intellect.

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