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Amazon tries again, with another $4 billion, to get Anthropic to use its AI chips rather than Nvidia GPUs

Nov 22, 2024 - businessinsider.com
Amazon has announced a $4 billion investment in AI startup Anthropic, bringing its total investment in the company to $8 billion. The deal includes an agreement for Anthropic to use Amazon's AI chips more frequently, with the aim of challenging Nvidia's dominance in the AI chip market. As part of the agreement, Anthropic will use AWS as its primary cloud and training partner, and will contribute to the development of Amazon's AI model development platform, AWS Neuron.

However, the challenge lies in getting Anthropic to use Amazon's Trainium chips extensively, as switching away from Nvidia GPUs is complex and risky for AI model developers. Despite this, there are signs that Anthropic could be more committed to using Amazon's offerings after receiving another $4 billion from the company. Amazon hopes this investment will help it become less dependent on Nvidia and make cloud computing in the AI age cheaper.

Key takeaways:

  • Amazon has announced a further $4 billion investment in AI startup Anthropic, bringing the total investment to $8 billion. The deal includes an agreement for Anthropic to use Amazon's AI chips more.
  • The investment is part of Amazon's strategy to challenge Nvidia's dominance in the AI chip market and encourage developers to switch from Nvidia GPUs to Amazon's Trainium chips.
  • Anthropic will use AWS as its primary cloud and training partner, and will also help Amazon design future Trainium chips and contribute to building out an Amazon AI model development platform called AWS Neuron.
  • Despite the investment, it remains unclear whether Anthropic will fully commit to using Amazon's chips over Nvidia's, with Anthropic CEO Dario Amodei stating that they use custom chips from both companies and see value in all of them.
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