Amazon Invests $4B in AI Startup Anthropic to Compete with Cloud Rivals
Amazon.com announced on Monday its plans to invest up to $4 billion in the high-profile AI startup Anthropic. This move is aimed at competing with growing cloud rivals in the field of artificial intelligence. As part of the deal, Amazon’s employees and cloud customers will gain early access to Anthropic’s technology, which they can integrate into their businesses. In return, the San Francisco-based startup will rely primarily on Amazon’s cloud services for its operations.
The immediate investment from Amazon will be $1.25 billion, with the possibility of triggering another $2.75 billion in funding. The CEOs of Amazon’s cloud division and Anthropic confirmed that Amazon will not gain a board seat and its stake will only represent a minority position. The exact percentage of Amazon’s ownership in Anthropic and the updated valuation of the startup have not been disclosed.
This investment marks a significant response from Amazon to the challenges posed by Microsoft and Google, who have been actively marketing or developing powerful AI technologies. Microsoft, in particular, has invested billions of dollars in its partnership with OpenAI, the creator of ChatGPT, to provide its customers with exclusive access to the startup’s AI models.
While Anthropic has also received funding from Google in the past, its collaboration with Amazon demonstrates the ongoing efforts by cloud companies to establish ties with AI startups that are reshaping the industry. As part of the deal, Anthropic will work on developing technology for Amazon’s in-house Trainium and Inferentia chips, further driving demand for AI-powered chips.
Dario Amodei, CEO of Anthropic, emphasized that the company’s latest financing does not disrupt its existing agreement with Google. Anthropic will continue to utilize Google’s custom chips and make its technology available on Google Cloud and other platforms. However, the partnership with Amazon will boost Bedrock, an AI service offered by Amazon that has already attracted numerous users.
Both companies are committed to ensuring that future versions of Anthropic’s AI model, called Claude, will be available on Amazon Bedrock for many years to come. Amazon’s customers, including LexisNexis, Bridgewater Associates, and Lonely Planet, will be able to benefit from early access to Anthropic’s technology, enabling them to customize their AI applications and improve their search capabilities.
This investment by Amazon demonstrates its dedication to providing a wide range of AI models to customers, ensuring they have little reason to seek cloud services elsewhere. While Amazon’s future investments in AI startups remain uncertain, the company is keen on further enhancing its chip technology and AI infrastructure.
The partnership between Amazon and Anthropic represents a strategic move to stay competitive in the rapidly evolving field of AI. By harnessing the potential of AI technologies, Amazon aims to secure its position as a leader in cloud computing and artificial intelligence.
