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Amazon is thinking about investing more money in Anthropic, a competitor of OpenAI. The Information reported that Amazon is in discussions to invest multiple billions in Anthropic, which would be their first financial commitment since a $4 billion deal last year. However, there is a catch this time. Amazon wants Anthropic to use silicon developed by Amazon and hosted on Amazon Web Services for training its AI.

Anthropic currently prefers using Nvidia chips, but the financial incentive from Amazon might be too tempting to ignore. Earlier this year, Anthropic estimated that it would spend over $2.7 billion in 2024 to train and expand its AI products. The company has been seeking new funding at a valuation of $40 billion, and the pressure is on to secure investment soon.

So far, Anthropic has raised $9.7 billion, which is almost half of what OpenAI has raised. This potential new investment from Amazon could significantly boost Anthropic’s capabilities and help them compete more effectively in the AI market.

It is interesting to see how tech giants like Amazon are investing heavily in AI companies to stay ahead in the rapidly advancing field of artificial intelligence. By requiring Anthropic to use Amazon-developed silicon, Amazon is not only providing financial support but also ensuring that its technology is integrated into Anthropic’s operations.

This partnership could lead to exciting developments in AI research and technology, as well as potentially opening up new opportunities for collaboration between Amazon and Anthropic. Keep an eye on this space for further updates on the outcome of these investment talks and the impact it could have on the AI industry as a whole.