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The success of OpenAI’s ChatGPT, a chatbot unveiled last year that can write poetry, essays, and other works from a brief suggestion, has resulted in billions of dollars being spent on the subject.
Amazon announced on Monday that it would spend up to $4 billion in AI firm Anthropic, entering an AI competition led by Microsoft, Google, and OpenAI.
The success of OpenAI’s ChatGPT, a chatbot unveiled last year that can write poetry, essays, and other works from a brief suggestion, has resulted in billions of dollars being spent on the subject.
Amazon had previously stated that it intended to improve its Alexa voice assistant with generative AI, which the company claimed would allow customers to conduct more natural conversations.
Anthropic, situated in San Francisco, is regarded as a pioneer in the subject and has its own chatbot, Claude, which competes with ChatGPT.
“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,” Andy Jassy, CEO of Amazon, said.
Anthropic will use Amazon’s chips and cloud services for “mission critical workloads” as part of the agreement. Cloud services are data centers that store and process data on a large scale.
Amazon announced that it would take a “minority ownership position” in the AI startup, which has already raised hundreds of millions of dollars since its inception in 2021.
The transaction increases rivalry between Amazon and Google, which had previously offered its cloud services to Anthropic and committed $300 million to purchase 10% of the company.
AI firms’ models necessitate massive processing power, and Amazon Web Services and Google Cloud are two of the largest providers.
