Amazon to Invest Up to $4 Billion in Ai Startup Anthropic

Amazon.com Inc. announced on Monday its commitment to invest up to $4 billion in the AI startup Anthropic, with a strategic objective of expediting the advancement of its forthcoming foundation models and ensuring their accessibility to customers within its cloud business, Amazon Web Services (AWS).

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In this newly established partnership between Amazon and Anthropic, the startup will harness AWS Trainium and Inferentia chips to construct, train, and deploy its future foundation models. Foundation models, designed to generate diverse and comprehensive outputs, possess the versatility to perform a spectrum of tasks and applications, including text, image, or audio generation. The collaborative effort between the two entities will focus on the enhancement of Trainium and Inferentia technologies for future applications.

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Anthropic has selected AWS as its principal cloud service provider, opting to conduct the majority of its workload on the AWS platform. In a testament to its commitment, Anthropic will extend AWS customers worldwide access to forthcoming iterations of its foundation models, granting them early access to distinctive customization features.

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Amazon CEO Andy Jassy expressed enthusiasm about the collaboration, highlighting its potential to amplify the value of AWS's offerings such as Amazon Bedrock, a new managed service enabling companies to leverage various foundation models for generative AI applications, as well as AWS Trainium, the company's AI training chip.

Anthropic made its debut in 2021 with the introduction of Claude, its AI assistant, positioning itself as a formidable competitor to ChatGPT.

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In premarket trading, Amazon's stock (AMZN) demonstrated a 0.8% increase, further solidifying its impressive year-to-date gain of 54% in 2023, while the broader S&P 500 index (SPX) has advanced by 12.5%.

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