Google-backed AI startup Anthropic gets $4b investment for making Amazon its primary cloud computing service.  

Google-backed AI startup Anthropic gets $4b investment for making Amazon its primary cloud computing service.  

Anthropic will get up to $4 billion from Amazon, and the online retailer will own minority shares of the artificial intelligence business.

The investment serves as a reminder of how big tech businesses are investing heavily in AI in an effort to take advantage of the opportunities that the most recent iteration of the technology is poised to create.

The partnership, according to Amazon and Anthropic, is part of a larger effort to create the foundation models that support the generative AI systems that have attracted interest on a global scale.

To create text, photos, and videos that closely resemble the labor of humans, foundation models, sometimes referred to as massive language models, are trained on vast databases of internet information, including blog posts, digital books, scientific publications, and popular tunes.

In accordance with the arrangement, Anthropic will use Amazon as its main cloud computing provider and will train and deploy its generative AI systems utilizing the online retailer’s proprietary chips.

Former employees of OpenAI, the company that created the ChatGPT AI chatbot that caused a sensation by simulating human reactions, launched the San Francisco-based Anthropic.

Anthropic has unveiled Claude, a ChatGPT competitor. According to the business, the most recent version, which is offered in the U.S. and the U.K., is capable of “complex reasoning and detailed instruction to sophisticated dialogue and creative content generation.”

Amazon is attempting to catch up to competitors like Microsoft, which made a $1 billion investment in OpenAI in 2019 and a subsequent multi-billion dollar investment at the beginning of the year.

To stay up with the AI arms race, Amazon has been introducing new services, such as an update for its well-known assistant Alexa that allows users to have more conversational interactions with humans and AI-generated summaries of customer evaluations for consumers.

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