Amazon has revealed a substantial investment of $2.75 billion in the AI startup Anthropic. Anthropic’s Claude 3 Opus is now the most powerful LLM globally, nudging heavyweight GPT-4 down, on the LMSys leaderboard.
After garnering billions from various sources, including Amazon and Google, Anthropic has emerged as the primary competitor to OpenAI. Amazon’s fresh injection of funds into Anthropic, in addition to its previous $1.25 billion investment, now totals a remarkable $4 billion commitment, based on Anthropic’s last valuation of $18.4 billion. This deal ranks among the largest investments of the year.
Swami Sivasubramanian, Amazon’s VP of Data and AI, expressed optimism about the partnership, stating, “Generative AI is poised to be the most transformational technology of our time, and we believe our strategic collaboration with Anthropic will further improve our customer’s experiences, and look forward to what’s next.”
Why did Amazon Invest?
This investment aligns with Amazon’s strategic goals, particularly after Microsoft acquired Mustafa Suleyman, the former head of DeepMind, to lead its CoPilot team, followed by a $620 million deal for access to Inflection’s Pi models through Azure Cloud.
While Amazon will hold a minority stake in Anthropic without a board seat, this move signals a partnership focused on innovation while respecting Anthropic’s creative autonomy. This approach contrasts with concerns about Microsoft’s influence over OpenAI’s direction.
Regulators are scrutinizing Big Tech’s consolidation of smaller AI firms. The US FTC, led by Chair Lina Khan, has initiated a market inquiry into AI developers’ partnerships with major cloud service providers. Enhanced investigations into AI companies underscore the FTC’s commitment to enforcing antitrust laws in the rapidly evolving tech landscape.
Amazon’s investment in Anthropic reflects the broader trend of Big Tech’s interest in AI startups, which has drawn regulatory attention. With concerns about monopolistic behaviour and market dominance, regulatory bodies like the FTC are closely monitoring these investments and partnerships.
The inquiry into AI developers’ collaborations with major cloud service providers underscores the need for oversight in an industry where alliances can shape the trajectory of technological advancement. As the competition intensifies and the stakes grow, the role of regulators in ensuring fair competition and protecting consumer interests becomes increasingly crucial.
See also: White House Unveils New AI Rules for Federal Agencies
