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Reading: Amazon to invest up to $4 billion in Anthropic as an online retail steps up AI race
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Distinct Post > Business > Tech > Amazon to invest up to $4 billion in Anthropic as an online retail steps up AI race
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Tech

Amazon to invest up to $4 billion in Anthropic as an online retail steps up AI race

Lisa Sean Published September 25, 2023
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On Monday, Amazon said that it would invest up to $4 billion in AI firm Anthropic, as the online retail giant access into an AI race overpowered by Microsoft, Google, and OpenAI.

The success of OpenAI’s ChatGPT, a chatbot public the previous year that can develop poems, essays, and other assignments with just a brief prompt, has caused to billions be invested in the field.

Amazon had already disclosed it wants to soup up its Alexa voice assistant with generative AI, which the company said would let users have smoother talks.

Anthropic, a San Francisco-based AI firm, is noticed as a leader in the field and has its chatbot, Claude, a contender to ChatGPT.

Andy Jassy, the CEO of Amazon, said, “We have incredible respect for Anthropic’s team and foundation models, and think we can help enhance many customer experiences, short and long-term, through our deeper collaboration.”

The giant companies and rich investors of Silicon Valley have invested money into artificial intelligence as they aim to discover a killer application to explain the interest.

ChatGPT’s instant success tossed much of the focus onto chatbots and flared impersonators and opponents, not least from Google with its Bard chatbot.

Chinese titans Tencent and Baidu have also introduced bots they claim can oppose ChatGPT.

As part of Monday’s agreement, Anthropic will utilize Amazon’s chips to design its next models.

The AI firm will also operate Amazon’s cloud services — the data centers that store and process data on an extensive scale — for “mission critical workloads”.

Amazon said it would bring a “minority ownership position” to the AI firm, which has already made more than $1 billion since it was set up in 2021.

The statement revealing the agreement focuses on the advantages to customers of Amazon’s cloud computing arm, Amazon Web Services (AWS).

The agreement boosts the contest between Amazon and Google, which had earlier opened its cloud services to Anthropic and invested $300 million to obtain 10 percent of the company.

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