As companies continue to look to AI tools as investment opportunities, Amazon is stepping up its AI efforts, investing in Anthropic with plans to invest $4 billion in startups.
The e-commerce company announced on September 25 that it would pump up to $4 billion into the AI company and give it a minority stake in Anthropic.
According to Daily Sabah, the two companies have indicated that the initial investment will be $1.25 billion, with both parties having “the authority to trigger a further $2.75 billion in financing by Amazon. It is said that
I’ll catch up
Amazon’s move is to stay in the AI game, which is currently dominated by generative AI. The boom in generative AI occurred after the launch of ChatGPT by OpenAI, which quickly spread within weeks of its release to the market in November 2022.
For Amazon, this move competitors OpenAI, Microsoft, and Google currently dominate the generative AI industry and have already introduced chatbots before e-commerce companies.
Now, the two companies are joining forces in this partnership to advance generative AI, with Anthropic selecting Amazon Web Services (AWS) as its primary cloud provider.
CNBC reports that the core model is a large-scale AI program trained on vast amounts of data. This is so that it can solve a wide range of tasks.
“We have tremendous respect for Anthropic’s team and core model,” Amazon CEO Andy Jassy explained in a company statement.
“Through closer collaboration, we believe we can contribute to many customer experience improvements in the short and long term,” he added.
Also read: US states of Pennsylvania and Virginia issue AI executive order
Generative AI steals money
The success of ChatGPT sparked interest in chatbots and the development of rivals and imitators. The focus has shifted to generative AI chatbots.
Amazon’s decision is nothing new or surprising.according to RTEWealthy Silicon Valley investors have poured millions into the AI industry “in hopes of finding the killer application that justifies their interest.”
In China, where ChatGPT is restricted, tech giants Tencent and Baidu are developing their own chatbots that they claim could rival ChatGPT.
Apple is also reportedly developing its own chatbot, Apple GPT, to rival OpenAI’s ChatGPT and Google’s Bard.
your story reports that technology industry investments are shifting towards AI due to its transformative power. Venture capitalist firms are increasingly turning to AI tools to explore new opportunities.
In announcing the deal, Amazon emphasized the benefits it brings to its cloud computing arm, AWS. The deal also promises that Anthropic’s chatbot, Claude, will:
“We help customers of all sizes develop new AI-powered generative applications to transform their organizations.”
The latest investment deal also allows Anthropic to use Amazon’s chips in the development of its next models.
Anthropic was founded about two years ago and recently released Claude 2, a chatbot.Company founders, brothers Dario and Daniela Amodei was part of OpenAI, but left the company in 2021 over concerns that the AI company had become too commercial.
The two then founded their own company to focus on advancement. AI safety.