Amazon escalates AI arms race with additional $4B investment in OpenAI rival Anthropic [Yahoo! Finance]
Amazon.com, Inc. (AMZN)
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Source: Yahoo! Finance
Amazon will maintain its position as a minority investor and will be Anthropic's main training partner for AI models, the startup said. Amazon, which is Anthropic's primary cloud partner, is fiercely competing with Microsoft and Alphabet's Google to offer AI-powered tools for its cloud customers. The e-commerce company's increased investment in Anthropic underscores the billions of dollars funneled into AI startups over the past year, as investors look to capitalize on a boom in generative AI technology, which became popular with the launch of OpenAI's ChatGPT in late 2022. Microsoft-backed OpenAI last month raised $6.6 billion from investors, which could value the company at $157 billion and cement its position as one of the most valuable private companies in the world. Anthropic plans to train and deploy its foundational models on Amazon's Trainium and Inferentia chips.The intensive process of training AI models requires powerful processors, making securing pricey AI chips
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