Amazon Meets its $4bn Funding into Anthropic

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    Amazon will invest an additional $2.75 billion in Anthropic, further strengthening its relationship with the AI ​​company in the race for technological superiority.

    The deal is one of many investment partnerships in the works as some big tech companies and AI startups make big bets on AI, which is expected to boost their competitiveness. Amazon is also reportedly investing nearly $150 billion in data centers in anticipation of the AI ​​boom.

    Utilization of generative AI

    The $2.75 billion check, or (2.5 billion euros), brings the total amount pledged by the e-commerce giant to $4 billion. The company initially invested $1.24 billion in the AI ​​startup.

    The deal comes as Anthropic is raising funding from venture capitalists, with the deal giving the AI ​​startup access to computing services valued at more than $18 billion, according to The Irish Times. They say they could potentially obtain billions of dollars in capital and credits to do so.

    Amazon indicated Wednesday that it will become the “primary cloud provider” for Anthropic's key workloads. Amazon Web Services (AWS).

    “Generative AI is poised to become the most innovative technology of our time.” Said Swami Sivasubramanian, vice president of data and AI at AWS, Amazon's cloud computing subsidiary.

    “We believe our strategic collaboration with Anthropic will further enhance the customer experience, and we look forward to seeing what the future holds.”

    Additionally, the AI ​​startup will also use AI computer chips “developed in-house by Amazon.” It's also working with e-commerce giants to develop and enhance its hardware, with the aim of competing with Nvidia's chips, which are in high demand.

    Also read: Queen Mary conducts investigation into Metaverse IP

    Competition on OpenAI

    according to irish times, Anthropic is seen as OpenAI's most likely challenger to put pressure on ChatGPT. Already, Chatbot Arena rankings show that Anthropic's Claude 3 Opus outperforms OpenAI's GPT-4 on several industry benchmarks, according to user votes.

    The company is also trading its own stock for $30 a share as part of an effort to raise capital and computing credits to fund cutting-edge AI models, according to people with knowledge of the deal. It is said that they are doing so.

    Venture capitalists are also reportedly keen to put about $750 million into Anthropic in a round expected to close in April. A significant portion of the total funding was raised through a special purpose vehicle set up by Silicon Valley firm Menlo Ventures, an existing Anthropic investor, according to people familiar with the matter.

    Amazon's acquisition comes after regulators in the U.S., U.K. and EU have filed a forensic investigation into deals between big tech companies and the most prominent AI startups, arguing that they could create uncompetitive risks. This was done despite thorough scrutiny. Other big tech companies, including Microsoft, have also backed OpenAI by investing more than $10 billion in AI startups.

    But Amazon has its eye on the AI ​​ball beyond its $4 billion investment in Anthropic.

    A decade and a half of AI investments

    by irish examinerAmazon is also considering spending about $150 billion on data centers over the next 15 years.

    The investment is seen as a sign that the company wants to maintain its cloud services, which it “holds about twice the market share of second-largest Microsoft.”

    “We're expanding our capacity quite significantly,” said Kevin Miller, AWS vice president of data centers.

    “I think it brings us even closer to our customers.”

    The data center expansion is aimed at meeting growing demand for corporate services such as file storage and databases.


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