Why Amazon Is Investing Up To $4 Billion In ChatGPT’s Rival Anthropic

Anthropic is an American AI startup that was founded in 2021. Its backers include Salesforce, Zoom, Spark Capital and more. Anthropic is said to have an AI-powered text-analyzing chatbot called Claude. There are, also, said to be plans for a premium subscription plan for its chatbot, Claude 2. Amazon is an American multinational tech company that focuses on e-commerce, digital streaming and more.

And in September 2023, it was announced that Amazon would be investing up to $4 billion in Anthropic. It is said that initially, Amazon would invest about $1.25 billion to acquire a minority stake in Anthropic. And there may be an option to increase its investment to a total of $4 billion.

That being said, Anthropic is also backed by Google. Anthropic’s goal is said to be developing a frontier model known as “Claude-Next”. The ambition is to have it be 10 times more capable than the most powerful AI currently.

It may also include providing computing power through Amazon’s IT subsidiary Amazon Web Services. Anthropic could use AWS as its primary cloud provider for important tasks like safety research and future foundation model development. And Anthropic could leverage AWS chips to build, train and deploy its advanced AI models.

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