Amazon, the world’s largest online retailer, has expanded its investment into AI start-up Anthropic by $2.75 billion.
The intense competition Big Tech faces in the AI space is reflected in this move. Venture capitalists are expected to provide Anthropic with over $18 billion in cloud services and significant funding.
Amazon is moving forward, establishing itself as Anthropic’s main cloud provider, and using its AI chips to compete with Nvidia despite regulatory scrutiny. Amazon now has a stronger advantage over Microsoft and Google in the AI market because to this transaction.
Since its founding in 2021, Anthropic has been a formidable rival to OpenAI, with its most recent model, Claude 3, breaking through industry standards. The company is looking to raise over $750 million in funding, with Menlo Ventures serving as the primary facilitator, and is asking for $30 per share.
This calculated risk is a major step forward for generative AI technology and demonstrates Amazon’s dedication to AI research in the face of fiercer competition.
