American multinational company Amazon has invested another 4 billion or 4 billion dollars in OpenAI's rival Anthropy. The e-commerce giant has made the investment to strengthen its position in using Generative Artificial Intelligence (GenAI) technology against larger tech rivals. Also, through this investment, Anthropic will be able to better compete with ChatGPT. This information is known in the report of the news agency Reuters.
Last Friday, the Anthropic startup announced a new investment equal to Amazon's previous $4 billion investment. Amazon, however, remains a minority investor in Anthropic. Like previous investments, the investment will come in the form of convertible bonds (which can later be converted into shares) and will be disbursed in stages. 1.3 billion dollars will be invested first.
Anthropic is in talks with other investors to raise more funding, the sources said on condition of anonymity. However, Anthropic declined to comment on the matter.
Amazon has gradually become Anthropic's main cloud partner. Amazon is competing fiercely with Microsoft and Alphabet's Google to offer AI-powered tools for cloud customers. As the main distributor of Anthropic's latest models, Amazon Web Services (AWS) is bringing in significant revenue for the company.
“Investing in Anthropic is essential for Amazon to remain a leader in AI,” said technology analyst Gil Luria.
Amazon's increased investment in Anthropic highlights the billions of dollars invested in AI startups over the past year. As investors seek to reap profits through artificial intelligence technology. At the end of 2022, this technology became popular worldwide with the launch of OpenAI's ChatGPT.
Microsoft-backed OpenAI raised $6.6 billion in investment last month, giving the company a market value of $157 billion. This could make it one of the most valuable private companies in the world.
Anthropic will use Amazon's Trenium and Inferentia chips to train and deliver its models. AI model training requires robust processes. So it is very important for startups to use advanced and expensive AI chips.
“This partnership gives Amazon an opportunity to promote its AI services,” Luria said. For example: using its AI chips for training and inference, which Anthropic already uses.
Nvidia is currently dominating the AI processor market. One of the company's long list of customers is Amazon.
However, Amazon is working to make its own chip through 'Anaparna Labs Division'. Anthropic said it is working intensively on Amazon's processor development. Apart from this, Amazon is trying to create its own AI model named 'Olympus'.
Former OpenAI executives Dario and Daniela Amodei founded Anthropic. Last year it received a $500 million investment from Alphabet. Alphabet pledged to invest another $150 billion in Anthropy. The startup is also using Google Cloud Services for its operations.
