Amazon announced that it will invest up to $4 Billion in Anthropic, the AI company behind Claude. Amazon will take a minority ownership stake in the company and announced that Amazon Web Services (AWS) will become Anthropic’s principal cloud services provider.
The initial investment will be $1.25 Billion, and it immediately thrusts Anthropic’s Claude 2 into direct competition with ChatGPT from OpenAI (backed by Microsoft) and Google’s Bard and upcoming Gemini services.
Amazon is also investing heavily in the hardware space, hoping to compete with Nvidia in providing chip technology. Amazon wants its Trainium and Inferentia chips to be strong alternatives to those developed by Nvidia for training and running models.