Amazon kick-starts AI cloud ramp with $4 billion investment in Anthropic

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Amazon is looking to close the AI gap on its big tech rivals Google and Microsoft with a potential $4 billion investment in San Francisco-based startup Anthropic.

“We have tremendous respect for Anthropic’s team and foundation models, and believe we can help improve many customer experiences, short and long-term, through our deeper collaboration,” said Amazon CEO Andy Jassy.

Amazon shares were marked 0.72% higher in pre-market trading to indicate an opening bell price of $130.05 each.Real Money ProAmazon, which has lagged behind rivals Google and Microsoft MSFT in this year's rapid race to develop and deploy AI technologies, could use the Anthropic investment to springboard its efforts, particularly in the cloud space, heading into the final months of the year.

Jassy told investors in early August that while"most people are talking about the application layer, specifically what OpenAI has done with ChatGPT", further layers and investment opportunities remain. "We think AWS is poised to be customers' long-term partner of choice in generative AI. We're also continuing to make meaningful progress in building new customer experiences that can meaningfully change what's possible for customers in our business long term," he said."Amazon Business is one of our fastest-growing offerings with a $35 billion annual gross sales run rate.

 

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