Published
4 weeks ago on
March 28, 2024
The e-commerce giant Amazon has deepened its partnership with AI start-up Anthropic, investing an additional $2.75 billion, making it their largest venture commitment at $4 billion.
Organizations across the globe in nearly every industry are already using Amazon Bedrock to easily build #generativeAI applications with a broad choice of models including @AnthropicAI's Claude. And today, we are sharing the latest milestone in our strategic collaboration with…
— Adam Selipsky (@aselipsky) March 27, 2024
This move reflects Big Tech’s fierce competition in the AI sector. Anthropic, backed by venture capitalists, is set to receive substantial capital and cloud services, valued at over $18 billion.
Despite regulatory scrutiny, Amazon is forging ahead, positioning itself as Anthropic’s primary cloud provider, leveraging its AI chips to rival Nvidia. This deal strengthens Amazon’s position against Microsoft and Google in AI dominance.
Anthropic, founded in 2021, emerged as a challenger to OpenAI’s dominance, with its latest model Claude 3 surpassing industry benchmarks. The company is raising funds at $30 per share, expecting investments exceeding $750 million, primarily facilitated by Menlo Ventures.
Notably, Anthropic’s early investor, FTX, sold its stake due to bankruptcy, with Abu Dhabi’s Mubadala buying most shares for $500 million.
This strategic investment underscores Amazon’s commitment to AI innovation amid intensifying competition, signaling significant advancements in generative AI technology.
Also Read: OpenAI to Partner with Selected U.S. Builders for GPT Testing
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