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Amazon invests $4B in archrival OpenAI

Anthropic announced on Friday that the company is receiving a $4 billion investment from Amazon to help advance the startup’s efforts to develop Artificial Intelligence (AI) systems.

The new funding brings Amazon’s total investment in Anthropic to $8 billion and maintains the tech giant’s position as a minority investor in the startup. Anthropic is a leading competitor of OpenAI, an AI startup led by Sam Altman that received an estimated $13 billion in funding from Microsoft.

It also reveals that Amazon Web Services (AWS) will be Anthropic’s primary cloud and training partner.

Anthropic is the creator of Claude’s AI assistant, available through Amazon Bedrock – a service released by Amazon last year that gives customers the ability to customize models from third-party providers like Anthropic to meet their various needs.

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Claude AI’s Anthropic model is used by various notable companies in the core infrastructure. (Jaque Silva/NurPhoto via Getty Images/Getty Images)

The company noted in its announcement that Claude is used as the core infrastructure for “tens of thousands of companies looking for reliable and efficient AI solutions at scale.”

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Among those companies is Pfizer, which uses Claude at Bedrock to speed up research and delivery times for important drugs and reduce operating costs.

Intuit, the parent company of TurboTax, uses Claude on Bedrock to explain complex tax calculations for users. The European Parliament is also using Claude to power “Archibot” to make 2.1 million official documents quickly searchable and easy to analyze in multiple languages.

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Amazon AWS Anthropic

Amazon’s latest investment in Anthropic brings its total investment in AI startups to $8 billion. (Noah Berger/Getty Images for Amazon Web Services / Getty Images)

Anthropic is working with Annapurna Labs at AWS to develop and improve future generations of Trainium accelerators to enhance the company’s specialized machine learning hardware capabilities.

Early engineers are working with Annapurna’s chip design team to increase the computing efficiency of the hardware that will be used to train Anthropic’s more advanced base models. The company said this development approach allows it to “develop all aspects of model training from silicon all the way to the full stack.”

The announcement said the Anthropic-AWS collaboration helps drive advanced AI research for next-generation models and tools.

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“Together with AWS, we are building the technology foundation – from silicon to software – that will power the next generation of AI research and development,” Anthropic wrote. -AWS, we’re building a secure, enterprise-ready platform that gives organizations of all sizes access to leading edge AI technologies.”


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