Amazon announces completion of $4 billion investment deal with Anthropic AI, a ChatGPT rival, securing minority ownership.

Amazon has completed its $4 billion investment deal with Anthropic AI, a rival company to ChatGPT. The e-commerce and technology giant announced that it has invested an additional $2.75 billion into Anthropic, following an initial investment of $1.25 billion last September. Anthropic, founded by former members of OpenAI in 2021, has emerged as a strong competitor to ChatGPT with its own AI chatbot named Claude. The company recently unveiled its most advanced version, Claude 3, which can analyze images in addition to its chat capabilities. As part of the investment deal, Anthropic has chosen Amazon Web Services (AWS) as its primary cloud provider for critical workloads. Amazon disclosed that Anthropic will use AWS Trainium and Inferentia chips to construct, train, and deploy its upcoming models. In addition to its investment in Anthropic, Amazon recently launched its own AI-powered assistant called Amazon Q, specifically designed for businesses. While ChatGPT currently dominates the AI space in terms of popularity, other tech giants, such as Google, have also invested in Anthropic. However, Anthropic has faced legal disputes related to copyright and data infringement, including a lawsuit filed by Universal Music Group (UMG) in January. Despite these challenges, the investment in Anthropic highlights the growing interest and investment in AI startups.