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Home»AI Startups & Investments»Amazon invests $4 billion in OpenAI’s biggest rival
AI Startups & Investments

Amazon invests $4 billion in OpenAI’s biggest rival

November 25, 2024003 Mins Read
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Scott Ladner, CIO of Horizon Investments, analyzes biotech stocks and drug development in The Claman Countdown.

Anthropic announced Friday that the company is receiving a $4 billion investment from Amazon to help advance the startup’s development efforts. artificial intelligence (AI) systems.

This 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 one of the main rivals of OpenAI, the AI ​​startup led by Sam Altman that received around $13 billion in investment from Microsoft.

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

Anthropic is the builder of the Claude AI assistant, available through Amazon Bedrock – a service launched by Amazon last year that gives customers the ability to customize templates from third-party vendors like Anthropic to meet their different needs.

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Claude Anthropic

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

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

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Among these companies is Pfizer, which uses Claude in Bedrock to accelerate research and delivery times for critical medicines and reduce operational costs.

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

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Amazon AWS Anthropic

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

Anthropic works with Annapurna Labs at AWS to develop and optimize future generations of Trainium accelerators to advance the capabilities of the company’s specialized machine learning hardware.

The startup’s engineers work with Annapurna’s chip design team to maximize the computational efficiency of the hardware that will be leveraged to form Anthropic’s most advanced core designs. The company said this development approach allows it to “optimize all aspects of model training, from silicon to full stack.”

The announcement states that the Anthropic-AWS partnership helps drive advanced AI research for next-generation models and tools.

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“Together with AWS, we are laying the technology foundation – from silicon to software – that will power the next generation of AI research and development“, wrote Anthropic. “By combining Anthropic’s expertise in cutting-edge AI systems with AWS’s world-class infrastructure, we are building a secure, enterprise-ready platform that enables organizations of all sizes to access the cutting edge of AI technology. “

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