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Amazon concludes $4B GenAI investment in Anthropic

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Amazon wrapped up its $4 billion investment in Anthropic by kicking in an additional $2.75 billion to complete a deal made last year that gave it a minority stake in the generative AI (GenAI) company.

Amazon’s cloud unit AWS is now Anthropic’s primary provider for mission critical workloads including safety research and future foundation model development.

With the tie-up, Anthropic will use AWS-developed Trainium and Inferentia chips to build, train and deploy its future models.

The two companies stated Anthropic also agreed to a long-term commitment to provide AWS customers access to future generations of its foundation models on AWS’ Amazon Bedrock service.

Dr. Swami Sivasubramanian, vice president of data and AI at AWS, stated his company has “a notable history with Anthropic, together helping organisations of all sizes around the world to deploy advanced generative artificial intelligence applications”.

Anthropic struck a deal in November 2023 for chips from AWS rival Google for use in its Claude large language model (LLM).

The AI start-up also reportedly scored $2 billion in funding from Google last year after previously securing a ten per cent stake from the company with an initial investment of $300 million.

Anthropic also has backing from South Korean operator SK Telecom, which in August 2023 announced equity funding worth $100 million.

Google, Microsoft, Amazon and ChatGPT developer OpenAI, among others, are fiercely competing with each other across the GenAI sector.

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