To capitalize on the growing Generative AI craze, Amazon is investing heavily in Anthropic, a company that created ChatGPT’s rival, Claude.
Amazon can increase it’s investment up to $4 billion as per the agreement. As a part of the deal, Amazon leases it’s AWS infrastructure to Anthropic for running it’s upcoming models and other related works.
Investing For a Mutual Benefit
Amazon, the e-commerce giant, is probably the only major tech company alongside Apple that is left out of the ongoing Generative AI race, as they haven’t invented anything of such yet. Microsoft has invested in OpenAI to leverage it’s GPT model and Google invented it’s chatbot called Bard.
As we wait for others to jump into the craze soon, Amazon makes an indirect entry by investing $1.25 billion in Anthropic, a company that made a ChatGPT-like AI chatbot called Claude. As it plans to build a “frontier model” called “Claude-Next” – that is ten times more capable than today’s most powerful AI, it needs billion dollars to do so over the next 18 months.
And that’s where Amazon steps in with deep pockets. Aside from investing billions of dollars, Amazon will also help Anthropic to sell it’s offerings with a broader reach in the future, including Amazon’s cloud customers. As a part of the agreement, Amazon could also increase it’s investment to $4 billion later.
Also, the e-commerce giant offered it’s AWS services for mission-critical workloads, including safety research and future foundation model development. Anthropic will also use AWS Trainium and Inferentia chips to build, train and deploy it’s future foundation models. The AI startup has already been a client of AWS since 2021.
Though Amazon hopes to leverage Anthropic’s offerings, Anthropic already has Spark Capital, Salesforce, Sound Ventures, Menlo Ventures and Zoom as it’s backers. So, a deal to offer Claude or it’s underlying technologies to Amazon will mostly be non-exclusive.
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