Anthropic is set to benefit massively from an additional $4 billion from Amazon in a bid to strengthen its AI infrastructure lungs.
In a bid to boost investment in artificial intelligence company Anthropic, Amazon has recently announced a further investment of $4 billion which brings the total investment to $8 billion. And while Amazon is still a junior partner in the deal, it stipulates that Amazon Web Services (AWS) will be the primary cloud and training services provider for Anthropic. A key aspect within this contract is that Amazon has been recruited to provide Nurse and Inferentia AI chips for building their foundation models, which otherwise, would depend on Nvidia. In addition, Anthropic plans to work with Amazon’s Annapurna Labs on creating the Trainium AI accelerator chips of the next generation.
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This partnership is a clear indicator of reinforcements being made by Amazon as they try to take over the AI industry. Anthropic expects to burn a little over $2.7 billion by the end of this year. The company had previously raised $ 9.7 billion and now another $4 billion courtesy of Amazon; this helps the company amass enough ammunition to go head-to-head with the likes of OpenAI. This venture allows Amazon to expand the demand for its AWS AI chips and lessen the dependence on Nvidia whose hold over the AI chip market has been great.
The two companies also intend to jointly improve the Trainium silicon and the AWS Neuron software stack. On the one hand, people from both companies sit together in such a way as to gain the maximum from the hardware which is then used for the training of their most powerful foundation models. This tight integration enables Anthropic’s AI algorithms to take advantage of the most advanced Amazon hardware and software solutions.
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All in all, the growing investment and alliance between Amazon and Anthropic stresses the changes in the features of AI technology. This initiative not only enhances the AI capability of the company but also indicates a change in the dominant hardware in the industry.