Amazon Invests $1.25 Billion in AI Startup Anthropic, Drawing Comparisons to FTX
In a recent report by the Financial Times, it has been revealed that tech giant Amazon is set to invest $1.25 billion for a minority stake in Artificial Intelligence (AI) company Anthropic. This move by Amazon is seen as an attempt to strengthen its presence in the AI sector and catch up with competitors like Google and Microsoft, who have already made significant investments in AI technology.
The initial investment of $1.2 billion will be made through Amazon’s Web Services, with the potential for it to increase to around $4 billion in the long term. The Financial Times suggests that Amazon is looking to replicate Microsoft’s successful deal with OpenAI, which gave the company exclusive access and integration with OpenAI’s flagship product, ChatGPT. Microsoft’s investment in OpenAI amounted to a staggering $10 billion.
Anthropic, valued at approximately $5 billion, is considered to be one of the main competitors to OpenAI in the AI sector. Google, in response to ChatGPT, recently launched its own AI product called “Bard” and invested around $300 million in Anthropic. This investment provided the startup with access to Google’s cloud services and hardware. However, with the new deal, Amazon will replace Google chips with its own, as it aims to gain a foothold in the sector and challenge Nvidia’s market share.
Adam Selipsky, Head of Amazon Web Services, described the deal with Anthropic as a “significant expansion of the partnership.” As part of the partnership, Anthropic will have access to Amazon-built Trainium chips to train their language models.
Interestingly, there are connections between Anthropic and the failed crypto exchange FTX. In 2022, FTX invested $500 million in Anthropic, but subsequently went bankrupt. Crypto reporter Colin Wu highlighted this connection and suggested that FTX may sell its shares for more than $500 million, which would be beneficial for the exchange’s creditors.
FTX has been facing significant challenges following its collapse in late 2022, with the company owing billions to its creditors. The exchange’s new CEO, John Ray III, has been actively seeking assets to help repay the debts. Meanwhile, FTX has filed a lawsuit against its founder, Sam Bankman-Fried’s family, alleging that they benefited from his management of the company.
As of now, FTX’s native token FTT is trading at $1.2, with a 3% loss in the last 24 hours. This downward trend in FTT’s price can be seen in the daily chart.
Overall, Amazon’s investment in Anthropic signals its commitment to expanding its presence in the AI sector. The connections between Anthropic and FTX add an interesting twist to the story, as the failed crypto exchange continues to grapple with its financial troubles.
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