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  • Writer's pictureKailash Vaviya

Amazon to Enter a Strategic Collaboration With Anthropic by Investing up to $4 Billion

Updated: Sep 28, 2023

On September 25, 2023, Amazon announced a strategic collaboration with Anthropic, an Artificial Intelligence (AI) company. It will invest up to $4 billion in Anthropic and even have a minority ownership position.

Anthropic was founded in 2021 by ex-OpenAI executives and has recently launched its ChatGPT rival, Claude 2. The company chose Amazon Web Services (AWS) as its primary cloud provider. It will deploy all its future algorithms and foundation models on AWS.

As a part of this collaboration, Anthropic will make its future models accessible to all AWS customers. This will be a huge leap in the world of generative AI. Anthropic has proven to be one of the most promising players in this field. Making its future models accessible to other companies will create opportunities for them to build advanced generative AI applications.

Anthropic will also use Amazon’s semiconductors for building, training, and deploying its future models. The AI company commits to work with Amazon on its Trainium and Inferentia technology.

With this collaboration, Amazon might aim to capitalize on generative AI and keep pace with other major players like Microsoft and Alphabet Google. Amazon will also try to showcase that there are alternative chips available for generative AI deployments.

Until now, most AI startups have seen NVIDIA as an ideal chipset provider for deploying generative AI models. This has also been reflected in the rise of NVIDIA’s stock prices, which witnessed an all-time high of over $493. However, when Anthropic builds generative AI models on Amazon’s semiconductors, they will become an alternative to NVIDIA’s chipsets.

This will allow Amazon to explore a vast market, as hundreds of tech startups are launched annually. It will also create competition so that all semiconductor manufacturers strive to excel, leading to new innovations.

It is a mutually beneficial collaboration for both companies. While Amazon will enter the generative AI race and market its semiconductors, Anthropic will enjoy a huge investment from Amazon and all the benefits AWS brings.


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