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Amazon invests $4B in OpenAI’s biggest rival

Anthropic announced Friday that it has received a $4 billion investment from Amazon to accelerate its artificial intelligence (AI) systems development efforts.

The new funding brings Amazon's total investment in Anthropic to $8 billion and maintains the tech giant's status as a minority investor in the startup. Anthropic is a strong rival to OpenAI, an AI startup led by Sam Altman that has received about $13 billion in investment from Microsoft.

Additionally, Amazon Web Services (AWS) will be Anthropic's primary cloud and training partner.

Anthropic is a builder for the Claude AI assistant. This assistant is available through Amazon Bedrock. Amazon Bedrock is a service Amazon released last year that allows customers to customize models from third-party providers like Anthropic to suit different needs.

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Anthropic's Claude AI models are used in the core infrastructure of a variety of prominent companies. (Jack Silva/NurPhoto via Getty Images/Getty Images)

The company said in an announcement that Claude is used as the core infrastructure for “tens of thousands of enterprises seeking reliable and practical AI solutions at scale.”

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Among those companies is Pfizer, which uses Claude in Bedrock to shorten research and delivery timelines for critical medicines and reduce operating costs.

Intuit, the parent company of TurboTax, leverages Bedrock's Claude to help guide users through complex tax calculations. The European Parliament is also using Claude to power Archibot, making 2.1 million official documents instantly searchable and easy to analyze in multiple languages.

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Amazon's recent investment in Anthropic brings its total investment in AI startups to $8 billion. (Noah Berger/Getty Images for Amazon Web Services/Getty Images)

Anthropic is collaborating with AWS's Annapurna Labs to develop and optimize future generations of Trainium accelerators, increasing the capabilities of the company's specialized machine learning hardware.

The startup's engineers will work with Annapurna's chip design team to maximize the computational efficiency of the hardware leveraged to train Anthropic's cutting-edge underlying models. The company said this development approach allows it to “optimize every aspect of model training from silicon to the full stack.”

Anthropic's partnership with AWS is helping advance advanced AI research for next-generation models and tools, the announcement said.

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“Together with AWS, we are building the technology foundation, from silicon to software, that will power the next generation of AI research and development,” Anthropic wrote. “By combining Anthropic's expertise in frontier AI systems with AWS's world-class infrastructure, we are building a secure, enterprise-ready platform that gives organizations of all sizes access to cutting-edge AI technology.”

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