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Amazon Cements $4B Deal with AI Startup Anthropic

    Amazon Cements $4B Deal with AI Startup Anthropic
    Last updated Sep 25, 2023
    Image credit: Unsplash

    Facts

    • On Monday, Amazon announced its plan to invest up to $4B in AI startup Anthropic. Amazon will invest $1.25B immediately in the Claude chatbot maker with the option of investing the remainder later.
    • Amazon employees and cloud customers will gain early access to Anthropic’s technology, while the latter will work to develop technology for Amazon’s in-house Trainium and Inferentia chips.
    • Anthropic’s use of Amazon-designed semiconductors is designed to showcase the products as an alternative to ones made by companies like Nvidia.
    • Amazon will be the Anthropic’s "primary" cloud provider. But, following a deal announced in February, Google had said it was Anthropic’s "preferred cloud provider."
    • The deal is seen by analysts as another foray into the booming AI sector by Amazon, which is becoming increasingly interested in the technology.

    Spin

    Narrative A

    Amazon’s groundbreaking $4B investment in Anthropic enhances the supply chain titan's position against Silicon Valley rivals like Microsoft, Google, and Nvidia. This move introduces more robust competition in the tech industry AI "arms race." The availability of more alternatives in AI-friendly chips is also welcome at such a crucial stage in the sector.

    Narrative B

    While this large-dollar deal is notable, Anthropic is entangled in multiple cloud infrastructures — Google and Amazon — making the dynamics between the three companies somewhat hazy. Anthropic leaders have insisted "nothing has changed" in its February deal with Google, so the impact of the Amazon deal on the AI boom remains to be seen.

    Nerd narrative

    There is a 50% chance that Anthropic will enable users to identify AI-generate content before July 1, 2024, according to the Metaculus prediction community.


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