Amazon to invest up to $4bn in AI startup Anthropic, an OpenAI competitor
Amazon/Anthropic
Amazon has announced its intention to invest up to $4bn in AI startup Anthropic, founded by former OpenAI employees.
Here's What We Know
As part of the deal, Amazon will take a minority stake in the company and incorporate the startup's technology into various products in its business.
Anthropic will use Amazon's custom chips to build, train and deploy its future AI models. The startup has also committed to using AWS as its primary cloud provider.
According to Reuters, the initial investment will be $1.25bn with an option to raise a further $2.75bn.
Google also has a stake of around 10 per cent in Anthropic. The search giant invested $300 million in the startup in early 2023.
Despite the new deal with Amazon, Anthropic continues to partner with Google and still plans to make its technology available through Google Cloud.
Flashback
Anthropic was founded in 2021 by brother and sister Dario and Daniela Amodei.
The startup has developed Claude chatbots that work similarly to ChatGPT. Anthropic claims that their model is more reliable and secure due to the principles of self-correcting responses.
Claude is also capable of handling voluminous queries, which is useful for analysing long texts.