Technology

Amazon invests up to $4 billion in AI start-up Anthropic

Amazon has invested up to $4 billion in San Francisco-based start-up Anthropic, a company specializing in generative artificial intelligence and its safety and research capabilities, according to a report by Fox Business1. The deal further enhances Amazon's presence in the AI industry and its dominance in the cloud industry, as it tries to fend off smaller rivals targeting its cloud service, AWS1 6. The investment is a strategic move for Amazon CEO Andy Jassy, who is trying to keep pace with rivals such as Microsoft and Alphabet's Google6.

The investment will be made in stages, with Amazon initially investing $1.25 billion for a minority stake in Anthropic, which operates an AI-powered, text analyzing chatbot3 4. As part of the deal, Amazon said it has an option to increase its investment in Anthropic to a total of $4 billion4 5. The two firms are forming a strategic collaboration to advance generative AI, with the startup selecting Amazon Web Services as its primary cloud provider6.

The investment in Anthropic is part of Amazon's aggressive push into AI, which has seen the company invest in a wide variety of AI-powered products and services, including chatbots, voice assistants, and machine learning tools1 2 6. The investment is expected to help Amazon capitalize on the hype and promise of generative AI, which many technologists believe could be the next great frontier5.

Key facts:

Amazon has invested up to $4 billion in San Francisco-based start-up Anthropic, a company specializing in generative artificial intelligence and its safety and research capabilities, according to a report by Fox Business1.
The investment is a strategic move for Amazon CEO Andy Jassy, who is trying to keep pace with rivals such as Microsoft and Alphabet's Google6.
The investment will be made in stages, with Amazon initially investing $1.25 billion for a minority stake in Anthropic, which operates an AI-powered, text analyzing chatbot3 4.
As part of the deal, Amazon said it has an option to increase its investment in Anthropic to a total of $4 billion4 5.
The investment in Anthropic is part of Amazon's aggressive push into AI, which has seen the company invest in a wide variety of AI-powered products and services, including chatbots, voice assistants, and machine learning tools1 2 6.
The investment is expected to help Amazon capitalize on the hype and promise of generative AI, which many technologists believe could be the next great frontier5.

Dwayne 'The Rock' Johnson on Life as an Entrepreneur and His Latest ZOA Energy Product

Dwayne 'The Rock' Johnson, former wrestler turned actor and entrepreneur, recently spoke with Forbes about his life as an entrepreneur and his latest product, ZOA+ Powder. Johnson launched ZOA Energy in 2021 alongside his fellow co-founders, Chief Innovation Officer Dave Rienzi and Chief Visionary Officer Dany Garcia. According

Tesla Accused of Racial Harassment and Hostile Work Environment in California Factory

Tesla has been accused of subjecting Black employees at its California auto-assembly plant to racial harassment and a hostile work environment in a federal lawsuit filed on September 28, 20231. The lawsuit alleges that Tesla has tolerated racial harassment and discrimination against Black employees at its Fremont factory, including the

WSJ News Exclusive | TikTok Employees Say Executive Moves to U.S. Show China Parent’s Influence

TikTok has spent the past three years trying to convince U.S. lawmakers it can operate independently in this country from its China-based parent company, ByteDance. However, after recent personnel moves, some employees aren’t so sure. According to a report by The Wall Street Journal, TikTok employees have pointed

Braun Faces Backlash for Featuring Trans Man in Ad

Braun, a shaving razor company, is facing backlash after an ad featuring a trans male model with double mastectomy scars shaving their beard resurfaced on social media. The controversial image was recently found among promotional images on Braun's website. In the image, there were double mastectomy scars on

America's States are Trying to Set Rules for the Internet

The internet has changed a lot since America Online's discordant tones marked the slow progress towards an even slower online connection. But federal and state legislators have struggled to keep up with policies to regulate it. California's new online-safety law for children, signed by Governor Gavin

Amazon Faces Competition from Bargain Retailers Shein and Temu

Amazon is facing competition from bargain retailers Shein and Temu, which have gained popularity among U.S. consumers. Shein, originally a Chinese fast-fashion retailer, has positioned itself as a marketplace for practically anything, while Temu is a Chinese online marketplace that offers eye-catching bargains. The two companies are fighting for

Biden administration issues restrictions on gas furnaces in latest war on appliances

The Biden administration has announced its latest regulatory action targeting home appliances, this time targeting popular home gas-powered furnaces, according to a report by Fox News1. The Department of Energy (DOE) said the regulations would require furnaces to achieve an annual fuel utilization efficiency (AFUE) of 95% by 2029, meaning

China-linked hackers breach Microsoft, accessing 60K U.S. State Department emails

A group of hackers based in China has committed cyber espionage against the U.S., resulting in the theft of approximately 60,000 emails from the U.S. State Department, according to a report by Rebel News1. The breaches targeted Microsoft's email platform earlier this year, with all

Blue Origin and Sierra Space's Orbital Reef space station partnership in jeopardy

Blue Origin and Sierra Space are navigating a potential end to their partnership on the Orbital Reef space station project, according to sources who spoke to CNBC1. The companies announced Orbital Reef as a co-led project in 2021, but updates about the project dried up in the past year1. Shortly

OpenAI faces multiple lawsuits from authors over copyright infringement

A group of authors, including Sarah Silverman, have sued OpenAI for copyright infringement, accusing the company of copying their works to train an artificial intelligence system that will "replace the very writings it copied"1. The authors claim that OpenAI violated US law by copying their works without

Labor Unions Gain Power as Strikes Multiply and Workers Score Wins

The U.S. has lost seven million workdays to walkouts so far this year, the most in more than two decades2. Labor unions are exerting clout not seen in decades, winning big pay increases and better benefits in industries beset with worker shortages4. The strikes are working, and Americans are

Amazon invests up to $4 billion in AI start-up Anthropic

Read next

Chicago Considers Opening City-Owned Grocery Stores to Address Food Deserts

Target to Close Nine Stores Across Four States Due to Theft and Organized Crime

Trump's Mar-a-Lago Valued at $300 Million by Real Estate Insiders

Biden's Green Energy and EVs Policies Will Bankrupt the US

Intel Hit with $400M EU Antitrust Fine for Anticompetitive Practices