Amazon to Invest as Much as $4 Billion in AI Startup Anthropic

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Amazon to Invest as Much as $4 Billion in AI Startup Anthropic
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Amazon.com Inc. will invest as much as $4 billion in Anthropic, bagging a crucial partner in its effort to become a major player in generative artificial intelligence and offering a vote of confidence in the hot startup.

As part of the deal, Anthropic will move most of its software to Amazon Web Services data centers, and use the cloud computing company’s homegrown chips to train the models it uses to power chatbots and other applications. Besides getting access to Amazon’s computing power, Anthropic will gain a financial infusion that will help it pay the huge costs required to train and run massive AI models. Amazon will have a minority position in Anthropic, the companies said in a statement on Monday.

AWS is the world’s largest seller of on-demand computing power and data storage. But it has been widely seen as a laggard in the emerging field of computer models trained to generate text, images and other content because it has lacked both a hit product and a high-profile exclusive partner in the arena. ChatGPT creator OpenAI runs its software on Microsoft Corp.’s data centers, a partnership based on a $13 billion investment that has sparked a renewal for Amazon’s Seattle-area neighbor.

“We have tremendous respect for Anthropic’s team and foundation models, and believe we can help improve many customer experiences, short- and long-term, through our deeper collaboration,” Amazon Chief Executive Officer Andy Jassy said in a statement.

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