Amazon considers upping Anthropic investment but on one condition
Amazon is said to be considering a major expansion of its investment in OpenAI rival Anthropic. The Information reports that the tech giant is in talks for an investment worth several billion dollars. This would be Amazon's second investment in Anthropic after a $4 billion deal last year. The new investment structure is similar to the previous one but with a new stipulation from Amazon.
Amazon's condition for increased investment
The new condition from Amazon for its increased investment is that Anthropic has to use silicon developed by Amazon and hosted on Amazon Web Services (AWS) to train its AI. Currently, Anthropic prefers NVIDIA chips for the job. However, the massive financial backing from Amazon could be too tempting to resist, possibly swaying the AI firm's hardware preferences.
Anthropic's financial projections and funding discussions
Earlier this year, Anthropic estimated it would spend over $2.7 billion in 2024 on training and expanding its AI products. The company has been in funding talks for months now, on a $40 billion valuation, The Information reported. So far, Anthropic has raised $9.7 billion in funding—less half of what OpenAI has raised at nearly $22 billion.
