Amazon is considering increasing its investment in OpenAI rival Anthropic.
According to The Information, Amazon is in talks to invest billions of dollars in Anthropic, which would be the company's first financial commitment since a $4 billion deal last year. The new investment is structured similarly to the previous investment, but with a twist. Amazon wants Anthropic to use Amazon-developed silicon hosted on Amazon Web Services to train its AI.
Anthropic prefers Nvidia chips. But the money may be too good to part with. Earlier this year, it was reported that Anthropic expected to burn through more than $2.7 billion in 2024 as it trains and scales its AI products. According to The Information, Anthropic has been in talks for several months about raising new funding at a valuation of $40 billion, so there's no doubt the pressure is on to land something soon.
To date, Anthropic has raised $9.7 billion. That's nearly half of OpenAI's $21.9 billion in revenue.
(Above, Anthropic CEO Dario Amodei)