Amazon is planning to invest $4 billion into Anthropic, a competitor of OpenAI

The AI model "Claude" introduced by Anthropic competes with ChatGPT

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.

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.

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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