Amazon.com Inc. (NASDAQ: AMZN), a California-based startup, just announced plans to invest an additional $4 billion in Anthropic. Anthropic is competing with OpenAI and other startups in a generative AI arms race.
The shares of the tech giant are nearing $200 on Friday.
Anthropic, a company that specializes in artificial intelligence, was founded by former OpenAI researchers. It is best known for its next generation AI assistant named Claude.
The public has not yet been able to purchase shares of this San Francisco-based company.
Anthropic uses Amazon chips
Amazon will now have invested $8 billion in Anthropic, despite its current position as a minor investor.
The multinational also does not have a representative on Anthropic’s board, but the investment announced this morning made Amazon Web Services “the primary cloud and training partner” of the AI startup.
Anthropic’s most sophisticated AI models will be trained using the Trainium and Inferentia chip, according to a blog posted on Friday.
Amazon’s investment into Anthropic is part a larger push to drive growth in the artificial intelligence market, which Statista predicts will be worth $1 trillion over the next ten years.
Amazon stock is up more than 30% from its low of the first week in August.
Anthropic AI model is human-like in its abilities
Amazon.com Inc. has decided to double down on its investment into Anthropic, just weeks after the AI startup announced that it had created new agents that could use a computer as if it were a person to perform complex tasks.
Jared Kaplan, the chief science officer of the company, says that its latest AI model can navigate websites, interpret text or enter it, or even click buttons on a computer to perform tasks that require “tens or hundreds of steps”.
In a recent interview with CNBC, he revealed that Anthropic provides early access to this artificial intelligence tool.
Anthropic launched Claude Enterprise also in September.
Anthropic is not only a hyperscaler that has invested in AMZN. Google also committed to investing $2 billion in the AI start-up last year.
Amazon stock could be heading for $285
Wall Street’s consensus “overweight rating” on AMZN is due in part to Amazon’s commitment towards strengthening its artificial intelligence footprint.
Analysts at JMP Securities predict that Amazon shares will rise to $285, which is a 40% increase from where they are now.
The investment firm recommends AMZN stock as an alternative to AI and cloud computing. It also highlights the company’s e-commerce and advertising segments, which are both growing rapidly.
BofA recommended investing in Amazon.com Inc. after the launch of Haul last week.
This post Amazon invests another $4 billion in AI startup Anthropic first appeared on The ICD
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