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Amazon doubles down on Anthropic, completing its planned $4 billion investment | TechCrunch


Amazon on Wednesday invested $2.75 billion in growing artificial intelligence giant Anthropic, following an option it opened last September. The $1.25 billion invested at the time must be bearing fruit, or perhaps they’ve realized there are no other horses left. Can come back.

September deal injects $1.25B into company In exchange for a minority stake, and some tit-for-tat agreements, Anthropic continues to use AWS for its broad computing needs.

Amazon reportedly has until the end of the first quarter to decide whether to increase its investment to up to $4B, and we’re just before that deadline, and the company has decided to commit the maximum amount.

Anthropic’s AI model One of the very few competitors with the highest level of ability (however you define it) but can be deployed by enterprises at scale in internal or user-facing applications. OpenAI’s GPT series and Google Gemini There are others out there, but an upstart like Mistral could soon threaten this fragile Big Three.

For whatever reason, lacking the ability to develop adequate models on their own, companies like Amazon and Microsoft have had to look to other companies (mainly OpenAI and Anthropic) instead. gained huge benefits By aligning with one or another of these wealthy competitors, there aren’t many downsides seen so far.

After (one has to assume) a closer look at how Amazon makes its AI sausage, there’s actually very little we can glean from Amazon’s decision to invest as much as possible.

It makes too much strategic sense for these companies to pour money into AI because they have huge sums of money reserved specifically for this purpose (and when they can’t outspend their competitors, they outspend their competitors). The world is a bit like a roulette table, with OpenAI and Anthropic representing black and red respectively. No one really knows where the ball will land, especially companies that can’t predict or create the technology themselves. But if your sworn enemy is betting on red, it only makes sense to bet on black.

Especially if you can bet on black at a discount – which is what Amazon did, as it could have invested at Anthropic’s September valuation, which was certainly lower than it is today.

That is, if things look sketchy over there – like the way they look at inflection Before Microsoft launched its attack — Amazon could have exited or simply invested less than the full $2.75 billion in additional funding. But it could send a confusing signal that no one wants to exit, especially existing multi-billion dollar investors.

We know Anthropic has a planthis year we’ll find out what Amazon, Apple, Microsoft, and other multinational companies think they can do to monetize this supposedly revolutionary technology.



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