AI is the emerging technology that everyone wants a piece of, especially tech companies. With Google, Microsoft, OpenAI, X, and others betting big on AI, Amazon is not going to be left behind in that race.
In the latest round of funding, Amazon adds $2.75 billion to its stake in AI startup Anthropic. This round concludes a $4 billion investment in the AI startup Anthropic from Amazon.
This is Amazon’s largest outside investment in three-decade history. This shows the commitment of the company in the AI space as they want to be a part of the latest tech revolution.
Anthropic is a San Francisco-based startup that’s viewed as a front-runner in generative intelligence. Its model, Claude, competes head-to-head with heavily funded ChatGPT from OpenAI.
Amazon will take a minority stake in the company at a valuation of $18.5 billion. In the past year or so, Anthropic did five deals worth $7.3 billion.
Claude from Anthropic competes with ChatGPT from OpenAI at both Enterprise and Consumer levels. Anthropic was founded by the ex-OpenAI research executives and employees.
This news comes only a few weeks after Anthropic debuted its latest model, Claude 3. The company claims that its newest AI model outperformed GPT 4 and Google Gemini Ultra on industry benchmark tests – reasoning, math, and coding.
“We have a notable history with Anthropic, together helping organizations of all sizes around the world to deploy advanced generative artificial intelligence applications across their organizations,” said Dr. Swami Sivasubramanian, vice president of Data and AI at AWS. “Anthropic’s visionary work with generative AI, most recently the introduction of its state-of-the art Claude 3 family of models, combined with Amazon’s best-in-class infrastructure like AWS Tranium and managed services like Amazon Bedrock further unlocks exciting opportunities for customers to quickly, securely, and responsibly innovate with generative AI. Generative AI is poised to be the most transformational technology of our time, and we believe our strategic collaboration with Anthropic will further improve our customers’ experiences, and look forward to what’s next.”
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