Amazon Joins Ai Race (4 Billion Anthropic Buy) #aitechnology #stockmarket #bitcoin

HomeOther Content, TechAmazon Joins Ai Race (4 Billion Anthropic Buy) #aitechnology #stockmarket #bitcoin
Amazon Joins Ai Race (4 Billion Anthropic Buy) #aitechnology #stockmarket #bitcoin
Amazon Joins Ai Race (4 Billion Anthropic Buy) #aitechnology #stockmarket #bitcoin
SAN FRANCISCO, Sept 25 (Reuters) – (AMZN.O) on Monday said it will invest up to 4 billion in cash in the high-profile startup Anthropic, in its effort to compete with growing cloud rivals on artificial intelligence.

Amazon’s employees and cloud customers will gain early access to technology from Anthropic as part of the deal, which they can infuse into their businesses. The San Francisco-based startup also committed to rely primarily on Amazon’s cloud services, including training its future AI models on large quantities of proprietary chips it would buy from the online retailing and computing giant.

In a joint interview, the CEOs of Amazon’s cloud division and Anthropic said the immediate investment will be 1.25 billion, with either party having the authority to trigger another 2.75 billion in funding by Amazon.

They declined to state how much Amazon now would own of Anthropic or the startup’s updated valuation, last estimated at more than 4 billion. Amazon said it would not gain a board seat and that its stake amounted to a minority position.

Anthropic, founded by former OpenAI executives including Amodei, is one of a series of companies building so-called generative AI, systems that can draft content as if a human created it. Anthropic has aimed to distinguish its work by training AI to adhere to moral values.

Amodei declined to state if its latest financing was competitive.

Anthropic is continuing an agreement it announced with Google in February, he said. Anthropic is using Google’s custom chips and has planned to make its technology available via Google Cloud and elsewhere.

Yet with Monday’s deal, Anthropic is giving a boost to Amazon Bedrock, a service that has attracted thousands of users to start building AI applications.

Amazon’s customers will gain features from Anthropic early, such as the ability to customize their AI. Selipsky said, /”both companies are committing that, for many years to come, future versions of Claude will be available on Amazon Bedrock, and that’s important./”

Anthropic’s Claude 2 is an AI model that is able to respond to particularly large prompts, setting it up to analyze long business or legal documents.

Amodei said the deal /”allows us to work more closely to drive enterprise usage for Claude,/” which he said represented much of the demand on Bedrock so far.

LexisNexis, a data analytics company, is working with Anthropic and Amazon to make its own legal search capabilities more /”intelligent,/” Amodei said. Other customers include Bridgewater Associates and Lonely Planet, he said.

Anthropic has yet to gain the name recognition or usage of OpenAI, the startup behind the GPT-4 model and ChatGPT, which is one of the fastest-growing software applications in history.

Amazon has aimed to give customers a broad range of AI models so they have little reason to look afield for cloud services.

Asked if Amazon would invest in additional AI startups beyond Anthropic, Selipsky said, /”I honestly don’t know what the future will hold./”

Reporting By Jeffrey Dastin in San Francisco; Editing by Kenneth Li and Chizu Nomiyama

Our Standards: The Thomson Reuters Trust Principles.

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