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HomeEntrepreneurshipAmazon Deepens Ties with Anthropic Through Multi-Billion Dollar AI Investment

Amazon Deepens Ties with Anthropic Through Multi-Billion Dollar AI Investment

Amazon is reportedly in discussions to make an additional multi-billion dollar investment in Anthropic, an artificial intelligence startup co-founded by former OpenAI executives Dario and Daniela Amodei. This follows Amazon’s previous $4 billion investment, marking its commitment to advancing Anthropic’s capabilities in AI and strengthening its own portfolio against competitors like OpenAI.

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Amazon’s involvement with Anthropic began in September 2023 with an initial investment of $1.25 billion, followed by a $2.75 billion boost in March 2024. Now, with this new round, Amazon is looking to solidify its partnership by ensuring Anthropic uses Amazon’s proprietary AI chips, hosted on AWS, over Nvidia’s chips, currently leading the market.

This strategic move gives Amazon customers early access to Anthropic’s advanced AI products and is seen as a critical step in enhancing Amazon’s AI infrastructure. Anthropic, currently valued around $40 billion, has amassed $9.7 billion in total funding, rivaling industry leader OpenAI’s $157 billion valuation.

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With investments from major players like Alphabet, Microsoft, Zoom, and Salesforce Ventures, Anthropic’s growth signals intensifying competition in the AI sector, as tech giants align with promising startups to accelerate innovation and secure market dominance.

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