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Amazon to invest up to $4 billion in AI startup Anthropic | TechCrunch

Sep 25, 2023 - news.bensbites.co
Amazon has agreed to invest up to $4 billion in AI startup Anthropic, initially investing $1.25 billion for a minority stake with an option to increase its investment to a total of $4 billion. The move intensifies Amazon's competition with Microsoft, Meta, Google, and Nvidia in the rapidly growing AI sector. As part of the deal, Anthropic will use Amazon Web Services (AWS) as its primary cloud provider for mission-critical workloads and will use AWS Trainium and Inferentia chips for its future foundation models.

Anthropic, which has raised a total of $2.7 billion from investors including Google, Spark Capital, Salesforce, Sound Ventures, Menlo Ventures, and Zoom, plans to provide AWS customers with access to future generations of its foundation models via Amazon Bedrock. The deal gives Amazon a significant presence in one of the fastest-growing AI startups, and Anthropic's CEO Dario Amodei expressed optimism about the future of the company's technology.

Key takeaways:

  • Amazon has agreed to invest up to $4 billion in AI startup Anthropic, initially investing $1.25 billion for a minority stake, with an option to increase its investment to a total of $4 billion.
  • Anthropic will use AWS as a primary cloud provider for mission critical workloads, including safety research and future foundation model development, and will use AWS Trainium and Inferentia chips to build, train, and deploy its future foundation models.
  • Anthropic has made a long-term commitment to provide AWS customers around the world with access to future generations of its foundation models via Amazon Bedrock, AWS’s fully managed service that provides secure access to the industry’s top foundation models.
  • Anthropic, which also counts Google, Spark Capital, Salesforce, Sound Ventures, Menlo Ventures, and Zoom among its backers, has now raised a total of $2.7 billion and was valued at about $5 billion in May this year when it secured $450 million.
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