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Amazon doubles down on Anthropic, completing its planned $4B investment | TechCrunch

Mar 27, 2024 - techcrunch.com
Amazon has invested an additional $2.75 billion in AI company Anthropic, following an initial investment of $1.25 billion last September. The deal included certain agreements, such as Anthropic continuing to use Amazon Web Services for its computational needs. Amazon had until the end of Q1 to decide whether to increase its investment to a maximum of $4 billion, and it has chosen to invest the maximum amount.

Anthropic's AI models are among the few that compete at the highest levels and are available for enterprises to deploy. Companies like Amazon and Microsoft have had to rely on others, primarily OpenAI and Anthropic, for AI development. The investment decision suggests that Amazon sees strategic value in pouring cash into the AI sector. This year will reveal how Amazon and other multinational companies plan to monetize this potentially revolutionary technology.

Key takeaways:

  • Amazon has invested an additional $2.75 billion in AI company Anthropic, following an initial investment of $1.25 billion last September.
  • The deal in September allowed Amazon a minority stake in Anthropic and certain agreements, such as Anthropic's continued use of AWS for its computation needs.
  • Anthropic's AI models are among the few that compete at the highest levels and are available for enterprises to deploy at scale.
  • Amazon's decision to invest the maximum amount suggests a strategic move to pour cash into the AI sector, particularly as it could invest at Anthropic's lower September valuation.
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