Amazon to invest an additional $4 billion in AI startup Anthropic

As big tech firms scramble to invest in generative AI, Amazon is spending an extra $4 billion in the artificial intelligence startup Anthropic.

This will increase Amazon’s $8 billion investment in Anthropic, which started last year. According to Anthropic, the IT behemoth from Seattle will continue to hold a minority stake in the venture, which was started by former executives of OpenAI, a company connected to Microsoft.

As part of the agreement, Amazon said that Amazon Web Services, its cloud computing division, will now serve as the main training partner for the San Francisco-based Anthropic. Additionally, it plans to train and implement its future fundamental models—the sophisticated systems that support general-purpose AI services like ChatGPT and Google’s Bard chatbot—using two AWS chips.

In a statement that was part of Amazon’s release, AWS CEO Matt Garman said, “We’ve been impressed by Anthropic’s pace of innovation and commitment to responsible development of generative AI, and we look forward to deepening our collaboration.”

Regulators both domestically and internationally have scrutinized the nexus between Big Tech firms and AI startups. But in September, Amazon received some good news when the UK’s competition authorities declared that Anthropic’s sales and combined market share with Amazon in the UK were not significant enough to warrant a thorough inquiry under the nation’s merger laws.

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