Amazon Completes Anthropic Investment with Additional $2.75B

Amazon Completes Anthropic Investment with Additional $2.75B

Published: March 29, 2024

Amazon announced in 2023 that it has made a $4 billion investment in Anthropic, a startup at the forefront of generative AI technologies.

The investment secures Amazon “a minority ownership position” within Anthropic.

After an initial payout of $1.25 billion, the tech giant announced on Thursday that it has completed its investment by giving Anthropic the remaining $2.75 billion.

“We have a notable history with Anthropic, together helping organizations of all sizes around the world to deploy advanced generative [AI] applications across their organizations,” Dr. Swami Sivasubramanian, VP of Data and AI at AWS, said in the official announcement.

Amazon’s AI Collab with Anthropic

Founded by former OpenAI executives in 2021, Anthropic has quickly gained recognition for its innovative AI tools capable of text generation and analysis.

The collaboration between Amazon and Anthropic extends beyond financial support.

Anthropic has agreed to leverage AWS data centers to power its operations, highlighting the strategic importance of cloud computing infrastructure in AI development.

Additionally, the company is using AWS Trainium to develop, train,n and deploy future AI models, committing to providing AWS customers with access to these models through Amazon Bedrock.

Anthropic is also utilizing Amazon's custom-built Inferentia computer chips, along with chips from Google, another significant partner in their ecosystem.

By focusing on LLMs trained on extensive datasets, Anthropic is at the forefront of generative AI development, enabling the creation of advanced chatbots capable of speedily and accurately replying to prompts.

Anthropic's flagship AI family, Claude 3, stands out for its ability to mimic human conversation.

Its Opus, Sonnet, and Haiku models are already available on Amazon Bedrock, Amazon’s machine-learning platform for developing AI apps.

According to metrics released by Anthropic, Opus, its “most intelligent model,” has already outperformed OpenAI’s GPT-4.

“Generative AI is poised to be the most transformational technology of our time, and we believe our strategic collaboration with Anthropic will further improve our customers’ experiences, and look forward to what’s next,” Sivasubramanian concluded.

Google invested $2 billion in Anthropic in 2023, while Accenture was part of a more recent collaboration. This shows that global tech leaders recognize the value of Anthropic’s work in generative AI.

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