TechDogs-"Amazon Plans To Invest $4 Billion Quest In Anthropic To Lead the AI Race!"

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Amazon Plans To Invest $4 Billion Quest In Anthropic To Lead the AI Race!

By TD NewsDesk

TD NewsDesk

Updated on Mon, Sep 25, 2023

Overall Rating
Are you ready for a tech giant to ramp up the race for AI domination?

That’s what Amazon is doing by investing an astounding $4 billion into Anthropic! As part of its drive to keep up with its competitors in the artificial intelligence market, Amazon said on that it will invest up to $4 billion in cash in the prominent AI startup, Anthropic.

As a result of the partnership, Amazon and its cloud clients will have early access to Anthropic's technologies. In exchange, the San Francisco-based startup has promised to rely heavily on Amazon's cloud services, including the use of Amazon's own chips to train its future AI models.

The CEOs of Amazon's cloud division and Anthropic announced in a joint interview that Amazon will initially spend $1.25 billion, with the option for any side to request an additional $2.75 billion.

Given that cloud competitors such as Microsoft and Alphabet's Google have marketed or built sophisticated AI models this year, this announcement may be Amazon's boldest rebuttal yet to these AI rivals. The partnership exemplifies ongoing efforts by cloud providers to forge alliances with AI firms driving the industry's transformation.

Microsoft has invested billions of dollars into a partnership with ChatGPT's inventor OpenAI since 2019, offering its clients early access to the startup's prose-writing, image-generating technologies.
Meanwhile, Google was a trailblazer in this area of AI and contributed to Anthropic's $450 million financing in May; the two companies have pledged to continue working together.

The new deal could mean higher demand for Amazon, especially for its AI-powered chips. Currently, Anthropic has promised to contribute to the development of Amazon's proprietary Trainium and Inferentia accelerator chips.

Amazon Web Services CEO Adam Selipsky stated that the partnership "will help make Anthropic's models better, will help make our chip technology and our AI infrastructure better."

Anthropic CEO Dario Amodei remarked that his firm "has obtained the money in a way that allows it to prioritise safety" and "allows us to continue to scale up our models."
 
Among the many startups developing "generative AI," Anthropic was launched by former OpenAI executives including Dario Amodei. As a means of setting itself apart, Anthropic has focused on teaching AI to respect human dignity and justice, calling itself a “AI safety and research company. “

According to Amodei, Anthropic is keeping the deal it made with Google back in February. Anthropic employs Google's custom-designed processors and has intentions of making their technology available on Google Cloud and beyond.

Meanwhile, the deal with Amazon will benefit Amazon Bedrock, a service that has drawn thousands of developers interested in artificial intelligence application development.

Customers of Amazon will have early access to Anthropic capabilities, such as the option to personalise their AI models. Selipsky remarked, "both companies are committing that, for many years to come, future versions of Claude will be available on Amazon Bedrock, and that's important."

Amodei said the acquisition "allows us to work more closely to drive enterprise usage for Claude," the AI chatbot developed by Anthropic, which he said accounted for the bulk of the demand on Bedrock.
 
Unlike OpenAI, the company behind the GPT-4 model and ChatGPT, one of the fastest-growing software programmes in history, Anthropic has failed to earn the name recognition or usage of OpenAI. However, that might soon change with big names lining up to work with Anthropic.

What will this high-stakes partnership between Amazon and Anthropic bring to the AI landscape?  Let us know your thoughts in the comments section below!

First published on Mon, Sep 25, 2023

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Artificial Intelligence (AI)Amazon AI Race $4 Billion Investment Anthropic AI Innovation Technology Future Of AI Tech Giant

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