Amazon in talks for second investment in AI startup Anthropic

Amazon is reportedly in advanced talks for a second multi-billion dollar investment in the AI startup Anthropic, building on its previous $4 billion commitment made in 2023. This new investment would not only bolster Amazon’s growing ties with Anthropic but also help enhance its strategic position in the highly competitive AI sector. Anthropic, which is using Amazon Web Services (AWS) to power its AI model training, has become a key player in the AI race.

In addition to providing financial backing, Amazon has reportedly asked Anthropic to utilise its servers, which are powered by Amazon’s custom-designed chips. However, sources note that Anthropic has a preference for using Nvidia-designed chips, which are widely recognised as the industry standard for AI processing. This dynamic highlights the ongoing competition between Amazon and Nvidia in the AI hardware space, as both tech giants vie for dominance in the rapidly expanding market.

Anthropic, founded by former OpenAI executives Dario and Daniela Amodei, has attracted significant interest from other major players in the tech industry. The startup secured a $500 million investment from Google’s parent company, Alphabet, last year, with Alphabet pledging an additional $1.5 billion over time. Despite these investments, both Amazon and Anthropic have declined to comment on the specifics of the latest talks regarding the new investment, underscoring the confidential nature of these high-stakes negotiations.