Home Money & Business Business Amazon earmarks extra $4 billion for AI firm Anthropic investment.

Amazon earmarks extra $4 billion for AI firm Anthropic investment.

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Amazon earmarks extra $4 billion for AI firm Anthropic investment.

Amazon is allocating an extra $4 billion to the artificial intelligence firm Anthropic as competition intensifies among major tech companies to invest in generative AI technologies.
This latest investment will elevate Amazon’s total commitment to Anthropic, which started in the previous year, to $8 billion. Anthropic has confirmed that the Seattle-based giant will continue to serve as a minority stakeholder in the organization, which was established by former executives linked to Microsoft’s OpenAI.

As part of this agreement, Amazon will designate its cloud computing division, Amazon Web Services (AWS), as the “primary training partner” for Anthropic. Furthermore, Anthropic will utilize two of AWS’s proprietary chips to train and implement its upcoming foundational models. These sophisticated systems are essential for the functionality of general-purpose AI services, including OpenAI’s ChatGPT and Google’s Bard chatbot.

“We’ve been impressed by Anthropic’s innovation speed and their dedication to the responsible evolution of generative AI, and are eager to strengthen our partnership,” stated Matt Garman, CEO of AWS, in a statement accompanying Amazon’s announcement.

The collaborations between major tech firms and AI startups are under close examination by regulators both in the United States and worldwide. Nevertheless, Amazon received favorable news in September when the UK’s competition authority concluded that Anthropic’s revenue, along with its combined market share with Amazon in the UK, was insufficient to warrant a comprehensive investigation under the nation’s merger regulations.