According to inside sources, Amazon (AMZN, Financial) is ready to invest significantly in Anthropic PBC, a San Francisco-based generative AI company Anthropic, for the second time. An investment that could be next is a $4 billion funding pledge to Anthropic in 2023 participations, a partnership that made Amazon Web Services AWS Anthropic's leading cloud services provider. However, the deal meant that Amazon obtained first dibs on Anthropic's state-of-the-art technologies in artificial intelligence.
Further specifics of the new investment still need to be sketchy. However, sources reveal that Amazon has instructed Anthropic to use Amazon's chips rather than those from Nvidia Corp (NVDA, Financial), which Anthropic has used before. This advancement brings a new strategy twist, as Amazon will likely incorporate its chip application within Anthropic's developing AI solutions.
Anthropic has raised $9.7 billion so far compared to OpenAI's $21.9 billion, with the latest funding round targeting a $40 billion valuation. The tie-up with Amazon is a bold move in tackling its chief rival, GPT-4 of OpenAI and other market-leading artificial intelligence languages.
Anthropic has been busy on several fronts; more recently, it has unveiled a deal with Palantir Technologies (PLTR, Financial) and AWS to provide Claude AI model to US intelligence and defense systems. The startup also presented two new models ,Claude 3.5 Sonnet and Claude 3.5 Haiku, which are powered by generative AI and expand the company's offering in the sphere of AI, where it competes with other similar businesses. Amazon has not stated the reported investment.
