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The deal deepens the relationship between Amazon and Anthropic as the AI company rushes to gain the ability to power its models.
Amazon said Monday, April 20, that it will invest up to $25 billion in Anthropic, as the AI company commits to spending more than $100 billion over the next 10 years on Amazon’s cloud technologies.
The agreement deepens the relationship between the two companies as Anthropic accelerates its ability to strengthen its structures.
Seattle-based Amazon will invest $5 billion in Anthropic now, with an additional $20 billion in the future, depending on certain commercial milestones. This is in addition to the $8 billion Amazon previously invested in the company.
Amazon has struggled to generate buzz around its AI models, such as the Nova, while continuing to be a leader in providing the necessary infrastructure for AI growth, such as cloud computing power. Amazon said it expects about $200 billion this year in capital spending, mainly for AI development.
Amazon is also betting big on big AI startups. The new investment in Anthropic, the creator of Claude, follows Amazon’s announcement earlier this year that it would invest up to $50 billion in OpenAI, the creators of ChatGPT.
In a statement, Anthropic said it expected to bring about 1 gigawatt of capacity through Trainium2 and Trainium3 chips by the end of the year. Anthropic eventually hopes to acquire up to 5 gigawatts of such capacity.
Amazon CEO Andy Jassy said in a statement that Anthropic’s use of Trainium chips “reflects the progress we’ve made together on custom silicon.”
Anthropic aims to move ahead in the AI race with model offerings focused on coding and design, while Amazon is seeking customers for its custom silicon chips designed for artificial intelligence training and routing.
Amazon shares rose nearly 2.7% in extended trading. – Rappler.com
