Amazon is thinking about putting more money into a company called Anthropic, which is a competitor to OpenAI.
A report from The Information says that Amazon is currently in discussions to invest several billion dollars into Anthropic. This would be their first investment since a previous deal last year where they invested $4 billion. Interestingly, this new investment would be similar to the last one, but there’s a special condition. Amazon wants Anthropic to use its own technology, specifically chips that they have developed, to help train Anthropic’s artificial intelligence systems, and these would be hosted on Amazon Web Services, which is their cloud computing platform.
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However, Anthropic has a preference for using chips made by a different company called Nvidia. Even though they might prefer Nvidia’s technology, the opportunity to receive a large amount of money from Amazon could be hard for them to ignore. Reports suggest that at the beginning of this year, Anthropic expected to spend more than $2.7 billion in 2024 just to enhance and develop their AI technologies. They have also been trying to secure new funding at a valuation of around $40 billion, which puts a lot of pressure on them to finalize a deal soon.
So far, Anthropic has raised about $9.7 billion in total, which is almost half of what OpenAI has raised, totaling $21.9 billion.
In the picture accompanying the article, you can see Anthropic’s CEO, Dario Amodei.
