Amazon will invest up to $4 billion in OpenAI rival Anthropic

Amazon announced on monday which will invest up to $4 billion in Anthropic, the artificial intelligence startup best known for its chatbot Claude and founded by siblings Dario and Daniela Amodei, who used to work for OpenAI.

As part of the deal, Amazon will gain minority ownership of the company and agreed to incorporate Anthropic’s technology into several products in its business, including the Amazon Bedrock service for creating artificial intelligence applications. Anthropic will also use Amazon’s custom chips to build, train and deploy its future core AI models, and has committed to using Amazon Web Services (AWS) as its primary cloud provider.

According Reuters, Amazon has initially committed to an investment of $1.25 billion, with the option to increase the investment by another $2.75 billion. If it reaches that total of 4,000 million dollars, Bloomberg reports that the deal will represent the largest known investment ever related to AWS, which is currently the world’s largest seller of on-demand computing power and data storage.

Google also has interests in Anthropic, with about a 10 percent stake after making a $300 million investment in the AI ​​startup earlier this year. According ReutersAnthropic continues its partnership with Google despite the new deal with Amazon and still plans to make its technology available through Google Cloud.