TechDogs-"Amazon Deepens Its Backing Of AI Company Anthropic With $2.75 Billion Investment!"

Emerging Technology

Amazon Deepens Its Backing Of AI Company Anthropic With $2.75 Billion Investment!

By TD NewsDesk

TD NewsDesk

Updated on Thu, Mar 28, 2024

Overall Rating
As the artificial intelligence (AI) sector keeps booming, companies are on the lookout to enhance their product offerings by infusing the potent technology across their products and processes.

A big part of the push in the industry is due to the capabilities of generative artificial intelligence (GenAI), which is seeing tech conglomerates invest heavily to stay ahead.

The AI boom even saw NVIDIA, the leader in AI chips, grow its valuation by market capitalization from $1 trillion to $2 trillion in just 270 days, whereas the first trillion took the company 24 years!

While Microsoft has poured money into OpenAI (ChatGPT) and Mistral AI (Mistral Large) and Google has built its own model (Gemini), Apple and Oracle aren’t far behind.

On the other hand, Amazon invested in Anthropic (Claude) and has now announced a major update on its investment along with other improvements.

So, what did Amazon say? Let’s explore!

What Did Amazon Announce?

  • In a news release published on Amazon’s website, the company announced that it was pouring in an additional $2.75 billion into Anthropic.

  • This announcement builds on a previous one made in September 2023, in which Amazon committed to a $4 billion investment in Anthropic, which saw an initial transaction of $1.25 billion.

  • Keeping in accordance with the previous agreement, believed to have been made at a valuation of $18.4 billion, Amazon will maintain a minority stake in Anthropic, without having a seat on the board.

  • The announcement comes just a little after Anthropic released its latest model, the Claude 3 family, which comprises of three state-of-the-art models named Claude 3 Haiku, Claude 3 Sonnet and Claude 3 Opus (in ascending order of capability).

  • In the past few days, Amazon and Anthropic have collaborated to make other moves too.


What Other Moves Have Amazon And Anthropic Made?

  • Earlier in March, Amazon announced the general availability of Anthropic’s latest and most powerful AI models from the Claude 3 family on AI Bedrock.

  • This would offer customers access to Sonnet and Haiku immediately, with Opus set to be available in the coming weeks.

  • As per Amazon, many businesses are using Amazon Bedrock to build their generative AI applications with Anthropic’s Claude AI.

  • Some of these businesses include ADP, Amdocs, Bridgewater Associates, Broadridge, CelcomDigi, Clariant, Cloudera, Dana-Farber Cancer Institute, Degas Ltd., Delta Air Lines, Druva, Enverus, Genesys, Genomics England, GoDaddy, Happy Fox, Intuit, KT, LivTech, Lonely Planet, LexisNexis Legal & Professional, M1 Finance, Netsmart, Nexxiot, Parsyl, Perplexity AI, Pfizer, the PGA TOUR, Proto Hologram, Ricoh USA, Rocket Companies and Siemens.

  • Ahead of this, Anthropic announced it would be using Amazon Web Services (AWS) as its primary cloud provider for mission critical workloads, which included safety research and future foundation model development. Furthermore, the company will bring AWS customers access to future generations of its foundation models on Amazon Bedrock.

  • Anthropic also mentioned it will use AWS Trainium and Inferentia chips to build, train and deploy its future models.

  • In more recent announcements, Anthropic, Amazon Web Services (AWS) and Accenture will collaborate to take generative AI ideas from concept to production. This will also see more than 1,400 Accenture engineers being trained as specialists in using Anthropic’s models on AWS.

  • As per the announcement, “By combining Anthropic's technical AI expertise, AWS's approach to security and reliability, and Accenture's deep industry knowledge, we hope to provide tailored solutions for trust-driven sectors and streamline the adoption of powerful AI systems that put humans at the center.”

TechDogs-"An Image Of Amazon's And Anthropic's Logo As Used In The Announcement"  

What Did Amazon Executives Say About The Move?

  • Dr. Swami Sivasubramanian, Vice President of Data and AI at AWS, said, “We have a notable history with Anthropic, together helping organizations of all sizes around the world to deploy advanced generative artificial intelligence applications across their organizations.”

  • [Contd.] “Anthropic’s visionary work with generative AI, most recently the introduction of its state-of-the art Claude 3 family of models, combined with Amazon’s best-in-class infrastructure like AWS Tranium and managed services like Amazon Bedrock further unlocks exciting opportunities for customers to quickly, securely, and responsibly innovate with generative AI.

  • [Contd.] “Generative AI is poised to be the most transformational technology of our time, and we believe our strategic collaboration with Anthropic will further improve our customers’ experiences, and look forward to what’s next.”

Do you think the blend of Amazon’s global reach and its AWS services along with Anthropic’s GenAI capabilities can help it compete against rivals and capture a better market share?

Let us know in the comments below!

First published on Thu, Mar 28, 2024

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Artificial Intelligence (AI)Emerging Technology Artificial Intelligence AI Generative AI GenAI Amazon Anthropic Claude AWS Investment Accenture Claude Claude 3

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