Amazon to invest up to $4 billion in OpenAI competitor Anthropic

Amazon announced on Monday It will invest up to $4 billion in Anthropic — the AI ​​startup best known for its cloud chatbot and founded by siblings Dario and Daniela Amodi, who worked on OpenAI.

Anthropic says its Claude AI model is safer than rival AI services because it can edit its own responses without human intervention.

As part of the deal, Amazon will take minority ownership of the company and agree to incorporate Anthropic’s technology into various products across its business, including the Amazon Bedrock service for building AI applications. Anthropic will use Amazon’s custom chips to build, train and deploy its future AI foundational models, and is committed to using Amazon Web Services (AWS) as its primary cloud provider.

According to Reuters, Amazon has initially committed an investment of $1.25 billion, with an option to increase the investment to another $2.75 billion. If it reaches a total of $4 billion, Bloomberg Reports suggest the deal would represent the largest-ever known investment in AWS, which is currently the world’s largest seller of on-demand computing power and data storage.

Google is also interested in Anthropic, with a stake of about 10 percent, after investing $300 million in the AI ​​startup earlier this year. According to ReutersDespite the new Amazon deal, Anthropic continues its partnership with Google and still plans to make its technology available through the Google Cloud.

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