Amazon will again invest billions in Anthropic but on one condition

Amazon is reportedly in discussions to make a second multi-billion dollar investment in Anthropic, an artificial intelligence startup that rivals Microsoft-backed OpenAI. However, this investment will come only after Anthropic agrees to one condition put forward by the e-commerce giant.
According to a report by The Information, Amazon has asked Anthropic to use a large number of servers that are powered by its AI chips developed in-house.
“During negotiations, Amazon has asked the OpenAI rival to use a large number of servers powered by AI chips the cloud provider developed in-house. Anthropic prefers to use Amazon servers powered by Nvidia-designed AI chips. The size of Amazon’s total investment in Anthropic could depend on the outcome of this discussion, specifically on the number of Amazon chips Anthropic agrees to use,” the reported
Amazon invested $4 billion in Anthropic in September last year, granting Amazon’s cloud services customers early access to Anthropic’s cutting-edge AI technology. The report also notes that Anthropic currently prefers to use Amazon servers equipped with Nvidia-designed AI chips.

Why Anthropic is a gaining tech giants’ support

Anthropic is co-founded by former OpenAI executives Dario and Daniela Amodei and has attracted investment from major tech players other than Amazon. Last year, the company secured a $500 million investment from Google’s parent company, Alphabet, which also promised that it will invest an additional $2 billion over time.

Anthropic to provide Claude AI models to US defence agencies

Anthropic has also announced a strategic partnership with data analytics giant Palantir and cloud computing leader Amazon Web Services (AWS) to provide its Claude AI models to US intelligence and defence agencies. Under this partnership, Anthropic’s Claude 3 and 3.5 models will be integrated with Palantir’s Artificial Intelligence Platform (AIP) and hosted on AWS’s secure cloud infrastructure.