Amazon spends $2.75 billion on AI startup Anthropic, its largest venture investment yet

E-commerce giant Amazon is looking to spend $2.75 billion as an investment in in artificial intelligence startup Anthropic.

The e-commerce giant is making its largest outside investment in its three-decade history by investing in Anthropic as it looks to gain an edge in the artificial intelligence race.

Anthropic is a front-runner in generative artificial intelligence. Its foundation model and chatbot Claude competes with OpenAI and ChatGPT.

The companies announced an initial $1.25 billion investment in September, and said at the time that Amazon would invest up to $4 billion.

Amazon will maintain a minority stake in the company and won’t have an Anthropic board seat, the company said.

Over the past year, Anthropic closed five different funding deals worth about $7.3 billion.

Google, meanwhile, has also backed Anthropic, with its own deal for Google Cloud. It agreed to invest up to $2 billion in Anthropic, comprising a $500 million cash infusion, with another $1.5 billion to be invested over time. Salesforce is also a backer.

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