Amazon Put Another $2.75 Billion Into Anthropic AI

IBL News | New York

Amazon put another $2.75 billion into San Francisco-based Anthropic AI last month, its largest outside investment in its three-decade history.

The deal was struck at the AI startup’s last valuation, which was $18.4 billion. In September, the e-commerce giant invested $1.25 billion.

Amazon will maintain a minority stake in this startup and won’t have an Anthropic board seat.

Founded by ex-OpenAI research executives and employees, Anthropic, creator of the chatbot Claude 3, competes with OpenAI in both the enterprise and consumer worlds.

The company said the most capable of its new models outperformed OpenAI’s GPT-4 and  Google’s Gemini Ultra on industry benchmark tests, such as undergraduate-level knowledge, graduate-level reasoning, and basic mathematics.

Amazon is offering Claude as part of its AWS’s Bedrock system, while Anthropic is using AWS as its primary cloud provider for mission-critical workloads, including safety research and future foundation model development. Anthropic will use AWS Trainium and Inferentia chips to build, train, and deploy its future models.