Amazon is investing another $2.75 billion to back the San Francisco-based artificial intelligence (AI) startup Anthropic. This raises Amazon’s total investment in the company to $4 billion. This marks the corporate giant’s largest outside investment in 30 years. It is being speculated that the move is Amazon’s way of securing the lead while the GenAI race becomes even more competitive.
The companies announced a $1.25 billion initial investment in September, with Amazon pledging to invest up to $4 billion at that time. With this announcement on Wednesday, Amazon’s second round of funding is complete.
The announcement of the Amazon investment comes a few weeks after Anthropic debuted Claude 3, its most recent collection of AI models—which it describes as its fastest and strongest model to date. According to industry benchmark tests like undergraduate-level knowledge, graduate-level reasoning, and basic mathematics, it is the most advanced of the company’s AI models, outperforming Google’s Gemini Ultra and OpenAI’s GPT-4.
“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,” said Swami Sivasubramanian, vice president of data and AI at AWS cloud provider, according to Amazon’s recent blog post.
The relationship between both companies is symbiotic. Anthropic stated that it will use AWS as its main cloud provider following the agreement. Additionally, it will train, construct, and deploy its foundation models using Amazon chips. Amazon has been working on developing chips of its own that could one day rival Nvidia.
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