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Amazon Invests $4 Billion in AI Startup Anthropic

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Tech giant Amazon (ticker: AMZN) recently announced its plans to invest up to $4 billion in AI startup Anthropic, positioning itself as a serious competitor in the artificial intelligence race against other Big Tech companies.

Through Amazon Bedrock, its AI platform for businesses, Amazon will grant early access to Anthropic’s cutting-edge technology to its cloud customers. Anthropic will utilize Amazon Web Services’ (AWS) in-house chips to develop, train, and deploy its AI software, also making AWS its primary cloud provider. As part of their agreement, Amazon will also acquire a minority stake in Anthropic.

This move follows Microsoft’s (MSFT) substantial investment in OpenAI and Google’s (GOOGL) involvement with Anthropic, highlighting the intensifying battle for AI supremacy among major players in the industry.

In 2021, Anthropic launched Claude, its AI assistant that competes with OpenAI’s ChatGPT. The company was founded by siblings Dario and Daniela Amodei, former employees of OpenAI.

As the AI boom gains momentum, Amazon is determined not to be left behind, demonstrating its commitment to remaining at the forefront of technological advancements.

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