Amazon announced on Monday that it will invest up to $4 billion in cash in the AI company, Anthropic in an effort to compete with burgeoning cloud rivals on artificial intelligence.
As part of the agreement, Anthropic’s technology will get early access to Amazon’s workers and cloud customers, allowing them to integrate it into their organisations.
The San Francisco-based business also vowed to heavily rely on Amazon’s cloud services, including training its upcoming AI models on a sizable number of custom chips it would purchase from the online retail and computing behemoth.
The CEOs of Amazon’s cloud division and Anthropic announced in a joint interview that there will be an immediate investment of $1.25 billion, with either partner having the power to prompt a further $2.75 billion in funding from Amazon.
The information may be Amazon’s largest response to far to smaller cloud rivals Microsoft and Alphabet’s Google, which have sold or created potent AI this year.
