With a $2.75 billion outside investment, Amazon funds the AI startup Anthropic. Anthropic is a leader in generative artificial intelligence, and the transaction intends to increase Amazon's capabilities in the race for artificial intelligence.
Amazon plans to invest $2.75 billion, its biggest outside sum to date, in the artificial intelligence startup Anthropic. This is a component of a bigger fundraising initiative in which Amazon promised to invest up to $4 billion when it was first revealed in September. Prominent in the field of generative artificial intelligence, Anthropic is recognised for its foundation model and Chatbot Claude, a rival to OpenAI and ChatGPT.
Amazon will have no board seat and only a minority ownership in Anthropic after the transaction. Anthropic has closed five funding agreements worth around $7.3 billion in the last 12 months. The company's goods are in direct competition with ChatGPT from OpenAI. The announcement of Amazon's investment comes soon after the launch of Claude 3, Anthropic's most recent AI model suite. According to the business, these models exceed Google's Gemini Ultra and OpenAI's GPT-4 in industry benchmark tests, making them the fastest and most potent models to date.
Investment in generative AI has increased recently; in 2023, a record $29.1 billion will be committed across almost 700 deals. Anthropic will train, develop, and implement its foundation models using Amazon's chips and AWS as its primary cloud provider in accordance with the terms of the investment agreement with Amazon. Anthropic has also received investments from other major IT companies, such as Microsoft and Google.
But as AI models become more complicated, there are risks associated with them. Recently, Google had to remove its AI image generator from the internet after users found outdated information. Although Claude 3 from Anthropic does not create images, users can upload images and other documents for analysis. Prior to this, Amazon had made the highest venture investment - more than $1.3 billion - in the electric vehicle manufacturer Rivian.
