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Pearl Digest > Blog > Technology > Amazon stakes $4 billion on Anthropic, a rival to OpenAI
Technology

Amazon stakes $4 billion on Anthropic, a rival to OpenAI

OswardNa
Last updated: September 26, 2023 9:19 am
OswardNa
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In order to offer advanced deep learning and other services to its Amazon Web Service (AWS) clients, Amazon is investing up to $4 billion in OpenAI rival Anthropic, the firm announced in a press statement. In exchange, Anthropic chooses AWS as its “primary cloud provider” for developing and deploying its upcoming foundation models. Following Google’s $400 million investment in the startup, it represents the second sizable investment in the venture created by former leaders of OpenAI.

With the potential to increase the investment to a total of $4 billion, the e-commerce giant will initially invest $1.25 billion to acquire a minority position in Anthropic. Salesforce, Zoom, Spark Capital, and other companies are among Anthropic’s supporters in addition to Google and Amazon. Notably, Anthropic was not required to purchase cloud services from Google as part of the terms of the agreement.

Anthropic has announced Claude 2, a subscription-based chatbot that works similarly to OpenAI’s ChatGPT. The “Constitutional AI” system developed by Claude is said to be more difficult to deceive than previous AI since it is directed by ten “foundational” principles of fairness and autonomy. According to TechCrunch, Anthropic is also developing a chatbot called “Claude-Next” that is intended to be ten times more effective than any existing AI.

With Google, Microsoft, and Open AI, the startup, which positions itself as an advocate for responsible AI deployment, recently established an AI safety group. Since 2021, it has been a part of AWS. “Claude excels at a wide range of tasks, from sophisticated dialogue and creative content generation to complex reasoning and detailed instruction, while maintaining a high degree of reliability and predictability,” claims Amazon.

AWS users will be able to access Anthropic’s AI models through Amazon’s Bedrock, a service made exclusively for AI development, as opposed to training their own models. With the new alliance, Amazon Cloud, which also provides its own AI applications, hopes to establish itself as a major player in the industry.

Microsoft-backed Thanks to its wildly successful ChatGPT chatbot and DALL-E picture-generating service, OpenAI is widely regarded as the industry leader in AI and chatbot technology. Despite worries about the legality and ethics of AI-appropriated work, the use of AI in business is still expanding tremendously. For instance, it was thought to be a major sticking point in the WGA writer’s strike.

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