Amazon invests $2.75 billion in AI startup Anthropic to boost AI capabilities

Amazon invests $2.75 billion in AI startup Anthropic to boost AI capabilities

Amazon is making its largest outside investment in its three-decade history to gain an edge in the AI race. The tech giant is investing $2.75 billion in Anthropic, a San Francisco-based startup known for its generative artificial intelligence models.

• Investment Details: This investment is part of a larger funding commitment Amazon made to Anthropic, with an initial $1.25 billion investment announced in September.

• Anthropic's Growth and Competitors: Anthropic has closed five funding deals totaling about $7.3 billion over the past year. The company's product competes with OpenAI's ChatGPT in both enterprise and consumer markets.

• Anthropic Founders: Anthropic was founded by Dario and Daniela Amodei, former OpenAI executives and employees.

• Claude 3 and Performance: Anthropic recently debuted Claude 3, its newest suite of AI models, which it claims are its fastest and most powerful yet. The company stated that its new models outperformed OpenAI's GPT-4 and Google's Gemini Ultra on industry benchmark tests.

Amazon will maintain a minority stake in Anthropic but won't have a board seat. The deal was made at Anthropic's last valuation of $18.4 billion.