Amazon Invests $4 Billion More in AI Startup Anthropic

Amazon is deepening its stake in artificial intelligence with an additional $4 billion investment in Anthropic, a San Francisco-based AI startup. This move brings Amazon's total investment in Anthropic to $8 billion since its initial funding began last year. Anthropic, founded by former leaders of OpenAI, is known for its work on foundational AI models, which power generative AI tools like ChatGPT and Google’s Bard chatbot. Despite the sizable investment, Amazon remains a minority stakeholder in the company. As part of the deal, Anthropic will designate Amazon Web Services (AWS) as its primary training partner and rely on AWS chips to develop and deploy future AI models. Matt Garman, CEO of AWS, praised Anthropic’s “pace of innovation and commitment to responsible AI development.” This partnership comes amid increased regulatory scrutiny of ties between Big Tech companies and AI startups. However, Amazon recently cleared a hurdle when Britain’s competition watchdog determined Anthropic’s market presence in the UK was too small to warrant a merger investigation. The investment highlights the growing competition among technology giants to secure a foothold in the rapidly evolving AI landscape