Amazon stated on Wednesday that it had increased its investment in Anthropic by $2.75 billion. Anthropic is a start-up competing with companies like OpenAI and Google in developing advanced A.I. systems.
Six months ago, Amazon invested $1.25 billion in Anthropic, making it Amazon’s primary A.I. partner in San Francisco. Amazon had the option to increase its total investment to $4 billion, which it exercised before the end of March as per financial filings.
The additional investment highlights the significant resources tech companies are allocating to A.I., demonstrating the financial support Anthropic requires to stay competitive.
Swami Sivasubramanian, an Amazon executive, mentioned in a blog post that the strategic collaboration with Anthropic will enhance customer experiences.
Anthropic recently saw a reduction in the holdings of a contentious investor. FTX, a bankrupt cryptocurrency exchange, received approval from a federal judge to sell its stake in Anthropic. FTX had invested $500 million in Anthropic in 2021, constituting an 8% stake.
The value of this investment skyrocketed, with Anthropic’s valuation tripling to $15 billion in just a year, as reported by The New York Times.
Founded in 2021 by former OpenAI researchers, Anthropic has attracted substantial funding to develop foundational A.I. systems.
Amazon’s investment in Anthropic extends beyond equity stake, involving access to A.I. systems and commitments to provide computing power. However, it falls short of triggering antitrust scrutiny.
As part of the partnership, Anthropic agreed to develop its A.I. using specialized Amazon-designed computer chips. Amazon anticipates that Anthropic will aid in meeting the cutting-edge A.I. demands and collaborate on chip designs.
Amazon also gains early access to Anthropic’s A.I. models for its cloud computing customers and has recently announced access to the powerful Claude 3 models.
FTX’s bankruptcy estate sold two-thirds of its shares in Anthropic for $884 million, primarily to ATIC Third International Investment. Other buyers include Jane Street and the Ford Foundation, viewing Anthropic as a significant competitor to OpenAI.
Darren Walker, president of the Ford Foundation, sees Anthropic as a positive development for the markets and public interest.
David Yaffe-Bellany contributed reporting.
