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Amazon invests heavily in one of OpenAI’s key rivals, Anthropic



The tech giant Amazon has sealed a strategic partnership with the AI startup Anthropic and has committed to investing approximately $4 billion in the startup. This move positions Amazon in the race for AI dominance alongside Google, Microsoft, and Nvidia.

Anthropic, an AI firm founded by a group of former OpenAI staff and led by Dario and Daniela Amodei, has developed an AI assistant named Claude. Similar to Microsoft-backed OpenAI’s ChatGPT and Google’s Bard, Anthropic positions Claude as a superior alternative. This claim is supported by Claude’s governing principles, which serve as its constitution.

In a strategic move, Amazon plans to utilize Anthropic’s AI model in the advancement of its products and services. In exchange, Anthropic will rely on Amazon Web Services as its primary cloud service provider. Additionally, Anthropic will be responsible for developing custom AI chips for Amazon.

As part of the agreement, Amazon will have a minority ownership stake in Anthropic. Initial reports suggest that Amazon has made investments totaling approximately $1.25 billion.

Prior to the partnership, Amazon announced that the next version of its digital assistant, Alexa will be powered by generative AI. “However, it is unclear if Amazon will integrate Anthropic’s AI into Alexa,” the report stated.

Earlier this year, Microsoft made a substantial investment of $10 billion in OpenAI, acquiring a 49% stake in the company. As a result, various Microsoft products such as Bing search, Office, and Windows have integrated OpenAI’s language models.

Additionally, Google invested $300 million in Anthropics last year and recently announced partnership deals, including becoming Anthropics’ preferred cloud provider. In May of this year, Anthropics raised funds from notable backers, with an estimated valuation of $5 billion, and Google was among them.

When asked about Amazon’s role as Anthropics’ primary cloud provider, co-executive Amodei informed the Financial Times that their arrangement with Google remains unchanged, without providing further details.

Read also;

OpenAI unveils voice and image features in ChatGPT

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