The Strategist

Amazon announces $2.75 billion investment in AI startup Anthropic

03/28/2024 - 06:18

Anthropic, an AI business, has received a $2.75 billion investment from Amazon, which raised the share of Amazon’s investment in the company to $4 billion.

Elliott Brown
Elliott Brown
According to a statement from Anthropic, Amazon will invest $2.75 billion in the business, Bloomberg reports. According to the agency, Amazon is wrapping up an agreement from 2023 to help the artificial intelligence startup and deepen their collaboration. 

With this, Amazon will have invested $4 billion in Anthropic overall. According to Bloomberg, Amazon was granted the option to supply extra money as part of the agreement in the form of a convertible promissory note, as long as it did so before the end of March.

Anthropic also committed to using Amazon's own computer chips and data centers to power parts of its operations as part of the agreement. 

In September 2023, Anthropic, a business that specializes in creating alternative GPT models of generative artificial intelligence, announced that Amazon would invest up to $4 billion in the company. At a simultaneous news conference, executives from Anthropic and Amazon's cloud business said that $1.25 billion would be invested initially, with the option for either company to propose further funding for an additional $2.75 billion.