E-commerce giant Amazon (AMZN) says it plans to invest up to $4 billion U.S. in artificial intelligence (A.I.) start-up company Anthropic, which is a rival to ChatGPT creator OpenAI.
In a news release, Amazon said its cloud customers will be given access to Anthropic’s technology through its “Bedrock” A.I. platform for businesses.
Anthropic will use Amazon Web Services’ (AWS) in-house microchips to build, train and deploy it’s A.I. software and make AWS its primary cloud provider.
As part of the deal, Amazon is taking a minority stake in Anthropic.
Amazon’s move follows rival Microsoft’s (MSFT) $10 billion U.S. investment in OpenAI earlier this year. Microsoft has integrated OpenAI’s ChatGPT A.I. technology into its Bing search engine.
Google parent company Alphabet (GOOGL), which is a leader in A.I. research and development (R&D), has already invested in Anthropic.
Anthropic launched it’s A.I. assistant, called “Claude,” in 2021. The company was founded two years ago by former employees of OpenAI.
The A.I. boom is getting more intense with additional companies such as Amazon entering the race for A.I. dominance and spending billions of dollars to gain access to the technology.
Amazon’s stock has increased 12% over the past year and currently trades at $129.12 U.S. per share.
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