Amazon has revealed plans to invest up to $4 billion in Anthropic, an AI startup founded by siblings Dario and Daniela Amodei, both former employees of OpenAI. While this investment falls short of the reported $13 billion Microsoft has allocated to OpenAI, it signifies Amazon's participation in the growing AI competition.

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Anthropic's Claude AI model, highlighted for its safety measures and autonomous response revision capability, competes with OpenAI's ChatGPT and Google's Bard. Amazon will acquire a minority stake in Anthropic and integrate its technology into various products.

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Amazon's initial commitment is $1.25 billion, with an option to increase it to $4 billion, potentially marking the largest investment linked to AWS.

In addition to Amazon, Google also has a stake in Anthropic, with around 10 percent ownership resulting from a $300 million investment earlier this year.

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