Amazon just announced that they are going to invest around $4 billion into the AI startup called Anthropic. Now, Anthropic has emerged as one of the best competitors to ChatGPT and Google’s Bard chatbots.
Anthropic is really a large-scale startup and it’s going to help Amazon, in stepping up with their competitors like Microsoft, Meta, and Google.
Like Amazon does not have its own AI models like ChatGPT or Google’s Bard, so they are heavily interested in investing around $4 billion into the Anthropic AI. And they are going to invest around $1.5 billion for a small stake in Anthropic.
Now Anthropic is also backed by other VCs and Anthropic is going to raise around more than $5 billion in the upcoming years to dominate the chatbot market. Anthropic has their own product called Cloude 2 which is an alternative to ChatGPT and they have also launched their premium pricing plan of this Cloude 2 model.
And as for the Anthropic AI, their Cloude 2 model is 10 times more powerful than any of the current AI systems. Now to develop and to dominate the AI market, Anthropic needs a lot of money and that they are going to raise in the upcoming 12 to 18 months.
Amazon is really a great investor in Anthropic and their investment is a very strategic approach to dominate the AI market. As per the reports, Anthropic is going to use Amazon’s AWS service as their primary cloud provider and all their research and future developments will be on AWS systems.
Also Anthropic is going to be using the AWS chips like Titanium. They are also going to deploy their future models onto the AWS. Now in turn, Amazon is going to greatly benefit from Anthropic because Amazon does not have their in-office AI systems so they can use Anthropic to improve their customer support. They can use Anthropic AI for a better recommendation of their products to their customers.
As per the CEO of Amazon, who is Andy Jassy, customers are really going to benefit from Amazon’s deal with Anthropic. As of now, Anthropic has raised $2.7 billion from Spark Capital, SoundVentures, Salesforce as well as Zoom and Menlo Ventures. And the net worth of the startup was around $5 billion of May this year and after May they also got additional $450 million of funding.
Now this deal is going to increase Anthropic’s market cap and it’s also going to help in making the dominant AI models and AI systems. One of the amazing things about this deal is that the AWS customers are also going to get access to amazing AI models, more AI features and they’re going to just love the benefits that they’re going to get.
So that’s it about the news about Amazon investing around $4 billion in Anthropic AI.