Generative AI, Amazon invests 4 billion dollars to master it

In the rapidly evolving world of generative AI, Amazon announced a massive $4 billion investment in Anthropic. It is a Californian startup specializing in generative artificial intelligence. This agreement highlights Amazon's commitment to AI and also represents a strategic move to compete with industry giants, such as Microsoft and Google .

Amazon and Anthropic: a strategic partnership

The news of Amazon's investment in Anthropic was made public by the Financial Times, underlining an initial investment of 1.25 billion dollars. The promise is that of an additional 2.75 billion dollars from the e-commerce giant. This clearly demonstrates the seriousness of Amazon's commitment to generative AI and its desire to remain competitive in the industry. Anthropic is an artificial intelligence startup with a valuation of nearly $5 billion. Founded by Dario and Daniela Amodei, former OpenAI executives, Anthropic represents a serious competitor to OpenAI. Remarkably, Google invested $300 million in Anthropic earlier this year. Despite the agreement with Amazon, Anthropic has declared that its relationship with Google will not be abandoned, thus remaining open to multiple collaborations.

One of the main goals of Amazon's investment in Anthropic is to create more advanced and intuitive virtual assistants. These future assistants will not only provide accurate answers to users' questions, but could also anticipate their needs and desires. Anthropic's extensive funding raise this year, coupled with the experience of co-founder Dario Amodei, makes it a key asset to the success of this goal.

Generative AI
Dario Amodei, CEO of Anthropic
Credit: Kimberly White/Getty Images

Alexa and the synergy with generative AI

Amazon recently unveiled the latest version of Alexa , the e-commerce giant's flagship virtual assistant. What makes this release special is the deeper integration of AI into everyday conversations . This was possible thanks to the implementation of the large language model (LLM), which makes interactions with Alexa more natural and intuitive. The new version of Alexa is able to understand indirect and multiple commands. This paves the way for smoother interactions between users and technology. The innovation is designed to make the virtual assistant an integral part of people's daily lives, making the user experience more satisfying and complete.

The competitive context in generative AI

Amazon's investment in Anthropic is a direct response to the challenges posed by Microsoft, Alphabet (Google's parent company) and other AI competitors. This shows how close the link between cloud computing companies and AI startups has become. Microsoft has made billions of investments in its partnership with OpenAI, offering its customers special access to ChatGPT . Alphabet has also invested in Anthropic, and this relationship could strengthen further following Amazon's investment. While Microsoft focuses on OpenAI and Alphabet has its own strategies, Amazon has chosen Anthropic. This diversification of investments is shaping the future of AI, allowing different companies to advance their visions and experiments.

Generative AI

In addition to the tech giants, a variety of startups and research labs are emerging in the generative AI space. These realities, often agile and highly specialized, represent an inexhaustible source of innovation . Amazon, Microsoft and Alphabet are quickly recognizing the value of these small businesses and looking to establish collaborations to stay ahead. This race for generative AI also presents a unique opportunity for developers and the open source community. Many of the most advanced artificial intelligence models are in fact made available through open source licenses. This allows developers to create innovative applications and contribute to the growth of AI in unexpected ways. Collaboration between companies and open source communities is therefore helping to shape the future of AI in ways that would have been unthinkable just a few years ago.

The article Generative AI, Amazon invests 4 billion dollars to dominate it was written on: Tech CuE | Close-up Engineering .