Amazon makes $2.7 billion investment in startup Anthropic in its largest venture investment
Amazon is making the largest external investment in its 30-year history, aiming to gain an edge in the artificial intelligence race.
The tech giant announced it will invest an additional $2.75 billion in Anthropic, a San Francisco-based startup widely considered at the forefront of generative artificial intelligence. Its underlying model and chatbot Claude competes with OpenAI and ChatGPT.
The companies announced that Initial investment: $1.25 billion In September of the same year, Amazon announced it would invest up to $4 billion. Wednesday's news marks the second tranche of that funding by Amazon.
Amazon will maintain a minority stake in the company and will not have a seat on Anthropic's board of directors, the company said. The deal was signed during the AI startup's last evaluation. it was $18.4 billionAccording to sources.
Over the past year, Anthropic has closed five different financing deals worth approximately $7.3 billion. Combined with his new investment in Amazon, that brings his total to over $10 billion. The company's products compete directly with OpenAI's ChatGPT in both the enterprise and consumer space, and was founded by former OpenAI research executives and employees.
News of the Amazon investment was announced weeks after Anthropic debuted Claude 3 is the company's latest suite of AI models, which it says is the fastest and most powerful yet. The company claims that the highest-performing new model outperforms OpenAI's GPT-4. GoogleGemini Ultra takes industry benchmark tests such as undergraduate level knowledge, graduate level reasoning, and basic mathematics.
“Generative AI is poised to become the most innovative technology of our time. We believe our strategic collaboration with Anthropic will further improve the experience for our customers, and we look forward to seeing what's next.” said Swami Sivasubramanian, Vice President of Data and AI. AWS.
Amazon's move is the latest in a spending offensive among cloud providers to gain an edge in the AI race. And this is his second update in a week of Anthropic's capital structure. Late Friday, a bankruptcy filing revealed that cryptocurrency exchange FTX has entered into a deal with a group of buyers to sell a majority of its shares. humancheck CNBC report since last week.
According to PitchBook, the term generative AI became mainstream and business parlance overnight. The sector has experienced explosive growth over the past year, with a record $29.1 billion invested in nearly 700 deals in 2023. OpenAI's ChatGPT will first demonstrate the technology's ability to generate human-like language and creative content in late 2022. Since then, OpenAI has stated: 92% or more of Fortune 500 companies have adopted the platform, spanning industries such as financial services, legal filing, and education.
Cloud providers like Amazon Web Services don't want to be treated unfairly.
It's a symbiotic relationship. As part of the deal, Anthropic said it will use AWS as its primary cloud provider. He also uses Amazon chips to train, build, and deploy underlying models. Amazon is designing its own chips that could eventually compete. Nvidia.
microsoft is making its own spending spree with a high-profile investment in OpenAI. Microsoft's OpenAI bet reportedly $13 billion The startup is valued at over $29 billion. Microsoft's Azure is also the exclusive provider of computing power for OpenAI, which means startup success and new business flows. return Connect to Microsoft's cloud servers.
Meanwhile, Google is also backing Anthropic and has its own deal with Google Cloud. He has agreed to invest up to $2 billion in Anthropic, of which he will receive a $500 million cash injection, with an additional $1.5 billion to be invested over time. Also sponsored by Salesforce.
Anthropic's new model suite, announced earlier this month, marks the first time the company has added “multimodality,” or options like photo and video capabilities to its generative AI.
However, multimodality and increasingly complex AI models also lead to more potential risks. Google recently took the AI image generator that is part of its Gemini chatbot offline after users discovered it. historical inaccuracies A questionable answer that spread widely on social media.
Anthropic's Claude 3 does not generate images. Instead, users are only allowed to upload images and other documents for analysis.
“Of course, no model is perfect, and I think that's a very important thing to say up front,” Anthropic co-founder Daniela Amodei told CNBC. early this month. “We've worked very hard to make these models as functional and safe as possible. Of course, there are places where the models are making things up from time to time.”
Amazon's biggest venture investment before Anthropic became an electric car maker Rivian, invested more than $1.3 billion. It was also a strategic partnership.
These partnerships are accelerating amid increased scrutiny under antitrust laws. Decline in acquisitions by the Magnificent Seven — Amazon, Microsoft, appleNvidia, Alphabet, meta and tesla — That impact has been offset by an increase in venture-style investing, according to Pitchbook.
Investments in AI and machine learning by these seven tech companies jumped from $4.4 billion in 2022 to $24.6 billion last year, according to PitchBook. At the same time, Big Tech M&A deals fell from 40 in 2022 to 13 last year.
“There's a kind of paranoid motivation for investing in potential disruptors,” Pitchbook AI analyst Brendan Burke said in an interview. “Another motive is to invest in companies that are more likely to increase sales and use other companies' products. Other companies are more likely to be partners than competitors.”
Big Tech companies' heavy spending in AI has come under fire for the seemingly circular nature of these agreements. Some, including Benchmark's Bill Gurley, have accused the tech giants of pouring money into their own cloud businesses that could show up in profits.girly explained It's as a way to “cannibalize your income.”
The Federal Trade Commission is scrutinizing these partnerships, including Microsoft's OpenAI deal and Google and Amazon's investment in Anthropic. The practice, sometimes referred to as “round tripping,” may be illegal, especially if the purpose is to mislead investors. However, Amazon says this type of venture investment does not qualify as a round trip.
FTC Chair Lina Khan announced a study Speaking at the agency's Technology Summit on AI, it described it as a “market study of the investments and partnerships being formed between AI developers and major cloud service providers.”
Summarize this content to 100 words Amazon is making the largest external investment in its 30-year history, aiming to gain an edge in the artificial intelligence race. The tech giant announced it will invest an additional $2.75 billion in Anthropic, a San Francisco-based startup widely considered at the forefront of generative artificial intelligence. Its underlying model and chatbot Claude competes with OpenAI and ChatGPT.The companies announced that Initial investment: $1.25 billion In September of the same year, Amazon announced it would invest up to $4 billion. Wednesday's news marks the second tranche of that funding by Amazon.Amazon will maintain a minority stake in the company and will not have a seat on Anthropic's board of directors, the company said. The deal was signed during the AI startup's last evaluation. it was $18.4 billionAccording to sources. Over the past year, Anthropic has closed five different financing deals worth approximately $7.3 billion. Combined with his new investment in Amazon, that brings his total to over $10 billion. The company's products compete directly with OpenAI's ChatGPT in both the enterprise and consumer space, and was founded by former OpenAI research executives and employees.News of the Amazon investment was announced weeks after Anthropic debuted Claude 3 is the company's latest suite of AI models, which it says is the fastest and most powerful yet. The company claims that the highest-performing new model outperforms OpenAI's GPT-4. GoogleGemini Ultra takes industry benchmark tests such as undergraduate level knowledge, graduate level reasoning, and basic mathematics.”Generative AI is poised to become the most innovative technology of our time. We believe our strategic collaboration with Anthropic will further improve the experience for our customers, and we look forward to seeing what's next.” said Swami Sivasubramanian, Vice President of Data and AI. AWS.Amazon's move is the latest in a spending offensive among cloud providers to gain an edge in the AI race. And this is his second update in a week of Anthropic's capital structure. Late Friday, a bankruptcy filing revealed that cryptocurrency exchange FTX has entered into a deal with a group of buyers to sell a majority of its shares. humancheck CNBC report since last week.According to PitchBook, the term generative AI became mainstream and business parlance overnight. The sector has experienced explosive growth over the past year, with a record $29.1 billion invested in nearly 700 deals in 2023. OpenAI's ChatGPT will first demonstrate the technology's ability to generate human-like language and creative content in late 2022. Since then, OpenAI has stated: 92% or more of Fortune 500 companies have adopted the platform, spanning industries such as financial services, legal filing, and education.Cloud providers like Amazon Web Services don't want to be treated unfairly.It's a symbiotic relationship. As part of the deal, Anthropic said it will use AWS as its primary cloud provider. He also uses Amazon chips to train, build, and deploy underlying models. Amazon is designing its own chips that could eventually compete. Nvidia. microsoft is making its own spending spree with a high-profile investment in OpenAI. Microsoft's OpenAI bet reportedly $13 billion The startup is valued at over $29 billion. Microsoft's Azure is also the exclusive provider of computing power for OpenAI, which means startup success and new business flows. return Connect to Microsoft's cloud servers.Meanwhile, Google is also backing Anthropic and has its own deal with Google Cloud. He has agreed to invest up to $2 billion in Anthropic, of which he will receive a $500 million cash injection, with an additional $1.5 billion to be invested over time. Also sponsored by Salesforce.Anthropic's new model suite, announced earlier this month, marks the first time the company has added “multimodality,” or options like photo and video capabilities to its generative AI.However, multimodality and increasingly complex AI models also lead to more potential risks. Google recently took the AI image generator that is part of its Gemini chatbot offline after users discovered it. historical inaccuracies A questionable answer that spread widely on social media.Anthropic's Claude 3 does not generate images. Instead, users are only allowed to upload images and other documents for analysis.”Of course, no model is perfect, and I think that's a very important thing to say up front,” Anthropic co-founder Daniela Amodei told CNBC. early this month. “We've worked very hard to make these models as functional and safe as possible. Of course, there are places where the models are making things up from time to time.”Amazon's biggest venture investment before Anthropic became an electric car maker Rivian, invested more than $1.3 billion. It was also a strategic partnership. These partnerships are accelerating amid increased scrutiny under antitrust laws. Decline in acquisitions by the Magnificent Seven — Amazon, Microsoft, appleNvidia, Alphabet, meta and tesla — That impact has been offset by an increase in venture-style investing, according to Pitchbook.Investments in AI and machine learning by these seven tech companies jumped from $4.4 billion in 2022 to $24.6 billion last year, according to PitchBook. At the same time, Big Tech M&A deals fell from 40 in 2022 to 13 last year. “There's a kind of paranoid motivation for investing in potential disruptors,” Pitchbook AI analyst Brendan Burke said in an interview. “Another motive is to invest in companies that are more likely to increase sales and use other companies' products. Other companies are more likely to be partners than competitors.”Big Tech companies' heavy spending in AI has come under fire for the seemingly circular nature of these agreements. Some, including Benchmark's Bill Gurley, have accused the tech giants of pouring money into their own cloud businesses that could show up in profits.girly explained It's as a way to “cannibalize your income.”The Federal Trade Commission is scrutinizing these partnerships, including Microsoft's OpenAI deal and Google and Amazon's investment in Anthropic. The practice, sometimes referred to as “round tripping,” may be illegal, especially if the purpose is to mislead investors. However, Amazon says this type of venture investment does not qualify as a round trip.FTC Chair Lina Khan announced a study Speaking at the agency's Technology Summit on AI, it described it as a “market study of the investments and partnerships being formed between AI developers and major cloud service providers.”
https://www.cnbc.com/2024/03/27/amazon-spends-2point7b-on-startup-anthropic-in-largest-venture-investment.html Amazon makes $2.7 billion investment in startup Anthropic in its largest venture investment
