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Amazon may up its investment in Anthropic — on one condition | TechCrunch

Nov 08, 2024 - techcrunch.com
Amazon is reportedly planning to increase its investment in OpenAI rival, Anthropic. The tech giant is in discussions to invest multiple billions in the AI company, following a $4 billion deal last year. The new investment comes with a condition that Anthropic uses Amazon-developed silicon hosted on Amazon Web Services for training its AI, a departure from Anthropic's preference for Nvidia chips.

Anthropic, which had projected a burn rate of over $2.7 billion in 2024 for training and scaling its AI products, has been in talks for new funding at a $40 billion valuation. The company has so far raised $9.7 billion, almost half of OpenAI’s $21.9 billion. The pressure is mounting for Anthropic to secure the new funding soon.

Key takeaways:

  • Amazon is considering increasing its investment in OpenAI rival Anthropic, potentially investing multiple billions.
  • The new investment is structured similar to the last one, with Amazon wanting Anthropic to use Amazon-developed silicon hosted on Amazon Web Services to train its AI.
  • Anthropic has been discussing new funding at a $40 billion valuation and has raised $9.7 billion to date.
  • Anthropic projected it would burn through over $2.7 billion in 2024 as it trained and scaled up its AI products.
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