Amazon Announces $4 Billion Investment in Anthropic, An AI Startup

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Amazon invests AI startup Anthropic

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Photo Credit: Anthropic

Amazon plans to invest $4 billion in AI startup Anthropic to compete with Meta, Microsoft, Nvidia, and Google. Here’s the latest.

Amazon says it will initially invest $1.25 billion for a minority stake in Anthropic, which operates an AI-powered chatbot capable of analyzing text speech. Amazon has the option to increase the full investment into Anthropic to $4 billion. Anthropic says it plans to raise as much as $5 billion over the next two years to build out its chatbot Claude Next—supposed to be ten times more capable than today’s AI.

Anthropic warns meeting this challenge will require billions of dollars in spending over the next 18 months. Microsoft has thrown over $13 billion in funding at OpenAI over the course of the last few years, so that should come as no surprise.

As part of this new investment agreement, Anthropic will use Amazon’s AWS as its primary cloud provider for mission-critical workloads, including safety research and future foundation model development. Anthropic says it will use AWS Trainium and Inferentia chips to build, train, and deploy its future foundation models.

“We have tremendous respect for Anthropic’s team and foundation models, and believe we can help improve many customer experiences, short and long-term, through our deeper collaboration,” adds Andy Jassy, Amazon CEO.

“Customers are quite excited about Amazon Bedrock, AWS’s new managed service that enables companies to use various foundation models to build generative AI applications on top of, as well as AWS Trainium, AWS’s AI training chip, and our collaboration with Anthropic should help customers get even more value from these two capabilities.”

“We are excited to use AWS’s Trainium chips to develop future foundation models,” adds Dario Amodei, Co-Founder & CEO of Anthropic. “Since announcing our support of Amazon Bedrock in April, Claude has seen significant organic adoption from AWS customers. By significantly expanding our partnership, we can unlock new possibilities for organizations of all sizes, as they deploy Anthropic’s safe, state-of-the-art AI systems together with AWS’s leading cloud technology.”