Amazon Spends Billions on Their Own AI Startup

( – Amazon has just made moves to make the biggest investment it’s made in all of its years of business, and it’s for its new AI startup company.

Anthropic, which is a San Francisco-based startup is viewed as the frontrunner in artificial intelligence. Amazon will invest almost three billion dollars into the company after already announcing last year that they’d be investing almost two billion into the company.

Amazon will not have an Anthropic board seat and they will hold a minority stake in the company. Anthropic closed on five different investment opportunities which totaled over seven billion. This Artificial Intelligence startup is expected to be a big competitor to OpenAI’s ChatGPT.

Just recently the company announced the Claude 3, which is the newest addition to their AI program; it’s allegedly the most powerful and fastest model yet. The company even claimed that its artificial intelligence model outperformed both Gemini from Google and ChatGPT from OpenAI.

Swami Sivasubramanian, vice president of data and AI, elaborated on the upcoming collab, saying, “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 customer’s experiences, and look forward to what’s next.” Amazon’s large investment proves that the company is trying to stay at the top of the race when it comes to AI.

Generative AI is a very popular market that has expanded over the years and we are seeing more and more tech companies investing in it. In the past year, there have been almost thirty billion dollars invested into AI across seven hundred different deals. Amazon is not the only company investing and we’ve seen other companies come out with their versions, such as Google’s Gemini.

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