Amazon Invests $2.75bn In AI Startup

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Amazon has recently announced that it will invest an additional $2.75bn into Anthropic, a rival of ChatGPT maker OpenAI, bringing its total investment in the Artificial Intelligence (AI) startup to $4bn. The deal marks the second round of funding by Amazon, who will maintain a minority stake in San Francisco-based Anthropic,

“The work Amazon and Anthropic are doing together to bring the most advanced Generative Artificial Intelligence (generative AI) technologies to customers worldwide is only beginning,” says Amazon’s press release.

The two companies are collaborating to develop so-called foundation models, which underpin the generative AI systems that have captured global attention. Under the deal, Anthropic will use AWS as its “primary” cloud provider and use Amazon’s custom chips to build, train and deploy AI models. It will also provide AWS customers, which are mostly businesses, with access to models on an Amazon service called Bedrock.

Amazon has announced that Delta Air Lines and Siemens were already using Bedrock to access Anthropic’s AI models.

The investment is the latest example of how the big technology companies are spending on AI startups amid growing public and business interest in the technology. However, as the scramble to occupy the rapidly expanding AI sector, it seem likely that US antitrust regulators will be looking into these investments.

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