From CNBC: 2024-03-27 12:50:11

Amazon is making its largest outside investment of $2.75 billion in Anthropic, a San Francisco-based startup leading in generative artificial intelligence. This marks a total investment of $4 billion from Amazon. Anthropic competes with OpenAI and ChatGPT, boasting the fastest and most powerful AI models, including Claude 3.

Cloud providers like Amazon, Microsoft, and Google are racing to stay ahead in the AI competition. Microsoft has invested $13 billion in OpenAI, creating a symbiotic relationship with its Azure cloud as the exclusive provider of computing power. Google has put up $2 billion in Anthropic, with Salesforce also backing the startup.

Big Tech’s spending spree in AI has sparked scrutiny over potential antitrust issues. Despite a drop in acquisitions, AI and machine-learning investments from Amazon, Microsoft, and other giants rose to $24.6 billion in 2023. The FTC is investigating these partnerships to ensure compliance with competition laws and prevent misleading investors.

Read more: Amazon spends $2.7B on startup Anthropic in largest venture investment