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Amazon spreads its AI bets with $4 billion investment into OpenAI rival Anthropic

Sep 25, 2023 - businessinsider.com
Amazon plans to invest up to $4 billion in AI startup Anthropic, a competitor to OpenAI known for its large language model, Claude. The investment will give Amazon a minority stake in the company, which will use Amazon's AWS cloud and Trainium chip to support the training of AI models. This move is part of the ongoing competition in the AI sector, with major companies like Google and Microsoft also investing in AI startups.

Anthropic, founded in 2021 by former OpenAI employees, will provide AWS customers with access to its technology, including "early access to unique features" for customization and fine-tuning capabilities. The startup, valued at $4.6 billion after raising $750 million in June, will benefit from access to expensive cloud compute and infrastructure for training new models.

Key takeaways:

  • Amazon plans to invest up to $4 billion in AI startup Anthropic, a competitor to OpenAI known for its large language model Claude.
  • The investment gives Amazon a minority stake in Anthropic and allows the startup to use AWS cloud and Trainium, a chip developed by Amazon to support the training of AI models.
  • Anthropic's technology will be accessible to AWS customers, with the startup set to provide early access to unique features around customization and fine-tuning capabilities.
  • Anthropic, founded in 2021 by former OpenAI employees, had a valuation of $4.6 billion in June after raising $750 million, with $300 million coming from Google.
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