AMZN: Amazon Joins AI Race with $4B Injection into OpenAI Rival Anthropic

In a catch-up play, Amazon is backing a company that has launched a competing product to the ChatGPT juggernaut. Who’s who in the race?

• Amazon is joining the AI race with a minority stake in Anthropic, a company that in 2021 unveiled Claude – a rival platform to the ChatGPT juggernaut, owned by OpenAI. And while OpenAI is backed by Microsoft with a $10B investment, Amazon is plowing $4B into Anthropic. Amazon stock AMZN rose 1.7% on the news.
• Through the investment, Amazon’s cloud clients will get early access to Claude. Vice versa, the platform will use Amazon Web Services’ native chips to build out its AI software. More recently, Anthropic released its Claude 2 AI assistant, saying the bot is great at working out content on complex topics.
• The AI boom is getting traction after a fairly quiet summer. With Amazon now breathing down Microsoft’s neck, and Google struggling to take its Bard bot off the ground, the race to the top is shaping up to be a competition between Big Tech giants, fighting with each other.