Amazon said Monday it will invest up to $4 billion in AI startup Anthropic, part of a strategic partnership as the tech giant looks to take on the likes of Google, Microsoft and Nvidia in the battle for AI supremacy.
File Photo: Amazon's multibillion dollar investment means it is ready to join an AI arms race ... [+]
Amazon plans to use Anthropic’s AI technology in its products and services, while the startup will rely on Amazon Web Services as its primary cloud services and aid in Amazon’s development of its custom AI chips, Amazon said in a press release.
Amazon says it will gain a “minority ownership position” in the AI startup as part of the deal, without offering further details.
The initial investment made by Amazon on Monday is believed to be around $1.25 billion, the Wall Street Journal and the Financial Times reported.
Anthropic, which is seen as a key rival to Microsoft-backed OpenAI, was valued at around $5 billion in its most recent fundraising round in May this year, which included backing from Google.
This is a developing story and will be updated.