Amazon invests $4 billion in AI start-up Anthropic, boosting AWS prospects

Amazon (NASDAQ:) has made a strategic investment of $4 billion in artificial intelligence (AI) start-up Anthropic, a move that could potentially bolster its cloud computing arm, Amazon Web Services (AWS). The deal was announced on Tuesday and is seen as a significant step towards stabilizing AWS’s revenue growth.

Anthropic, which competes with OpenAI, will now utilize AWS as its preferred cloud platform. As part of this partnership, the AI start-up will use Amazon’s new Trainium and Inferentia chips and host its AI assistant, Claude, on Amazon Bedrock.

This move comes at a time when AWS has been growing slower than rivals Microsoft (NASDAQ:) and Alphabet (NASDAQ:). However, despite the short-term growth challenges, CEO Andy Jassy remains confident in AWS’s long-term potential. He cited the platform’s robust data security and storage capabilities as key factors that make it an attractive partner for businesses.

The investment in Anthropic could have implications for the wider AI and cloud computing sectors. By partnering with Anthropic, Amazon is demonstrating its commitment to advancing its AI capabilities and strengthening its position in the competitive cloud services market.

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