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text-gray-850 md:px-6 md:text-10xl">Amazon doubles down on AI startup Anthropic with another US$4 billion</h1><div class="mb-6 md:px-6 min-h-[50px] text-gray-850 mt-4 space-y-4 md:flex md:flex-wrap md:space-y-0" data-testid="article-authors-list-component"><div class="flex items-center"><img class="flex-shrink-0 rounded-full" src="/assets-web2/default-BSkyYMCQ.png" width="50" height="50"/><div class="flex flex-col flex-wrap pl-2"><div class="font-public-sans text-xs font-normal leading-6 text-gray-650"><span data-testid="article-published-time">Published <!-- -->Sat, Nov 23, 2024 · 06:32 AM</span></div></div></div></div><div class="mb-3 flex items-center justify-between border-b border-t border-gray-250 py-3 md:mx-6 md:mb-6 md:py-4"><div data-testid="article-keyword-filter-first" class="w-full"><div data-testid="article-top-keyword" class="p-3 inline-block w-full bg-transparent !p-0 relative"><div class="group relative"><div class="flex items-center"><a class="line-clamp-1 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md:px-8">Anthropic is also in talks with additional investors to raise more capital amid Amazon&#x27;s backing, say sources. PHOTO: REUTERS</div></div></li></ul></div></div></div><div class="body-content tracking-tighter mb-6 mt-4 font-lucida text-lg font-medium leading-normal tracking-[-0.05625rem] text-gray-850 antialiased md:px-8 md:text-xl" data-testid="article-paragraphs-component"><div class="relative mb-4 md:mb-6"><p class="mb-4 md:mb-6 leading-8 -tracking-5%" data-story-element="paragraph" data-testid="paragraph-component">AMAZON pumped another US$4 billion into OpenAI competitor Anthropic, as the e-commerce giant goes up against Big Tech rivals in a race to capitalise on generative artificial intelligence technology.</p><p class="mb-4 md:mb-6 leading-8 -tracking-5%" data-story-element="paragraph" data-testid="paragraph-component">This doubles Amazon’s investment in the firm known for its GenAI chatbot Claude, but it remains a minority investor, the startup said on Friday (Nov 22). Similar to Amazon’s previous US$4 billion investment, it comes in the form of convertible notes and comes in phases, first at US$1.3 billion.</p><p class="mb-4 md:mb-6 leading-8 -tracking-5%" data-story-element="paragraph" data-testid="paragraph-component">Anthropic is also in talks with additional investors to raise more capital on the back of Amazon backing, sources added, who requested anonymity for discussing private matters. Anthropic declined to comment.</p><div class="my-8 md:my-12 w-screen bg-gray-125 transition-all duration-300 border-gray-175 min-h-0 border-y-0 bg-none py-0" style="max-width:0px;margin-left:calc(-1*(0px - 100%) / 2 );height:0"><div data-component="component-container" class="container px-3 sticky top-[120px]"><div class="relative mx-auto w-full md:w-10/12 md:px-8 lg:w-8/12"><div class="text-center text-center" data-testid="advertisement-element"><div id="dfp-ad-imu1" class="adunit-component"></div></div></div></div></div><p class="mb-4 md:mb-6 leading-8 -tracking-5%" data-story-element="paragraph" data-testid="paragraph-component">Amazon, which has gradually established itself as Anthropic’s primary cloud partner, is fiercely competing with Microsoft and Alphabet’s Google to offer AI-powered tools for its cloud customers. AWS is bringing significant revenue to Anthropic as a major distributor of its latest models.</p><p class="mb-4 md:mb-6 leading-8 -tracking-5%" data-story-element="paragraph" data-testid="paragraph-component">“The investment in Anthropic is essential for Amazon to stay in a leadership position in AI,” said DA Davidson analyst Gil Luria.</p><p class="mb-4 md:mb-6 leading-8 -tracking-5%" data-story-element="paragraph" data-testid="paragraph-component">The e-commerce company’s increased investment in Anthropic underscores the billions of dollars funnelled into AI startups over the past year, as investors look to cash in on a boom in the technology, which became popular with the launch of OpenAI’s ChatGPT in late 2022.</p><div class="py-10 md:-mx-8"><div class="mb-6 border border-gray-175 p-6 md:p-8"><div class="" data-component="generic-newsletter"><h5 class="mb-6 border-b border-gray-850 pb-2 !font-poppins text-base font-semibold uppercase leading-normal tracking-5% text-gray-850 md:text-lg">BT in your inbox</h5><div class="flex py-3 md:px-10 md:py-6"><img alt="Newsletter Img" class="hidden h-auto max-w-full self-start min-[321px]:block" width="75" height="75" src="/assets-web2/generic_newsletter-CGny2zps.png"/><div class="min-[321px]:pl-4 md:pl-6"><p role="description" class="mb-3 font-public-sans text-base font-light tracking-normal text-gray-850 md:text-lg">Start and end each day with the latest news stories and analyses delivered straight to your inbox.</p><div class="relative hidden w-full md:block md:w-4/5 lg:w-7/10 xl:w-6/10"><div class="relative"><button data-size="md" type="button" class="!outline-none focus-within:outline-none focus:outline-none outline-0 focus-within:outline-0 focus:outline-0 flex cursor-pointer items-center justify-center whitespace-nowrap rounded-full border border-solid border-gray-175 text-center !font-poppins text-gray-850 transition-all duration-150 hover:border-gray-850 data-[size=lg]:h-[68px] data-[size=md]:h-[42px] data-[size=sm]:h-[36px] font-semibold text-xs tracking-[0.02em] w-full min-w-[155px] bg-transparent px-0 py-0 hover:bg-transparent md:max-w-[155px]" data-rac="" id="react-aria-:R5l5moodcscu5:">Sign Up</button></div></div></div></div><div class="relative block w-full md:hidden "><div class="relative"><button data-size="md" type="button" class="!outline-none focus-within:outline-none focus:outline-none outline-0 focus-within:outline-0 focus:outline-0 flex cursor-pointer items-center justify-center whitespace-nowrap rounded-full border border-solid border-gray-175 text-center !font-poppins text-gray-850 transition-all duration-150 hover:border-gray-850 data-[size=lg]:h-[68px] data-[size=md]:h-[42px] data-[size=sm]:h-[36px] font-semibold text-xs tracking-[0.02em] w-full min-w-[155px] bg-transparent px-0 py-0 hover:bg-transparent md:max-w-[155px]" data-rac="" id="react-aria-:Rblmoodcscu5:">Sign Up</button></div></div></div></div></div><div class="w-screen bg-gray-125 transition-all duration-300 border-gray-175 min-h-0 border-y-0 bg-none py-0" style="max-width:0px;margin-left:calc(-1*(0px - 100%) / 2 );height:0"><div data-component="component-container" class="container px-3 sticky top-[120px]"><div class="relative mx-auto w-full md:w-10/12 md:px-8 lg:w-8/12"><div class="text-center text-center" data-testid="advertisement-element"><div id="dfp-ad-midarticlespecial" class="adunit-component my-8 md:my-12"></div></div></div></div></div><p class="mb-4 md:mb-6 leading-8 -tracking-5%" data-story-element="paragraph" data-testid="paragraph-component">Microsoft-backed OpenAI raised US$6.6 billion from investors last month, which could value the company at US$157 billion and cement its position as one of the most valuable private companies in the world.</p><p class="mb-4 md:mb-6 leading-8 -tracking-5%" data-story-element="paragraph" data-testid="paragraph-component">Anthropic plans to train and deploy its foundational models on Amazon’s Trainium and Inferentia chips. The intensive process of training AI models requires powerful processors, making securing pricey AI chips a top priority for startups.</p><p class="mb-4 md:mb-6 leading-8 -tracking-5%" data-story-element="paragraph" data-testid="paragraph-component">“It (partnership) also allows Amazon to promote its AI services such as leveraging its AI chips for training and inferencing, which Anthropic is using,” Luria said.</p><div class="mb-6 mt-8 border border-gray-175 p-6 md:-mx-8 md:mt-0 md:p-8" data-testid="article-read-more"><div><div class="mb-6 border-b border-gray-850 pb-2 !font-poppins text-base font-semibold leading-normal tracking-5% text-gray-850 md:text-lg">SEE ALSO</div><div data-testid="section-article-read-more"><div class="mb-6" data-testid="article-read-more-items"><div data-testid="basic-card" data-cueid="5383970" class="relative flex flex-wrap items-start gap-4"><div class="relative flex order-1 flex-shrink-0 w-[70px] lg:w-[90px]"><div class="flex items-center justify-center 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w-full"><div class="w-full" style="position:relative"><a rel="noopener" href="/companies-markets/telcos-media-tech/openai-considers-taking-google-browser-information-reports" target="_blank"><picture><source media="(min-width: 992px)" srcSet="https://cassette.sphdigital.com.sg/image/businesstimes/155a6f2fc19c36b01c6a7d012cd3b0610f9a09521fd7809e2a88e749c6caae7e?w=180&amp;h=120&amp;dpr=1&amp;f=webp 1x"/><source media="(min-width: 768px)" srcSet="https://cassette.sphdigital.com.sg/image/businesstimes/155a6f2fc19c36b01c6a7d012cd3b0610f9a09521fd7809e2a88e749c6caae7e?w=140&amp;h=100&amp;dpr=1&amp;f=webp 1x"/><source srcSet="https://cassette.sphdigital.com.sg/image/businesstimes/155a6f2fc19c36b01c6a7d012cd3b0610f9a09521fd7809e2a88e749c6caae7e?w=300&amp;h=200&amp;dpr=1&amp;f=webp 1x"/><img src="https://cassette.sphdigital.com.sg/image/businesstimes/155a6f2fc19c36b01c6a7d012cd3b0610f9a09521fd7809e2a88e749c6caae7e?q=20&amp;w=3&amp;h=2&amp;f=webp" loading="lazy" alt="OpenAI has spoken about the 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logo is seen painted on a building like a circuit board in Hangzhou, in China&#x27;s eastern Zhejiang province on October 30, 2024. (Photo by AFP) / China OUT" class="w-full aspect-3x2"/></picture></a></div></div></div><div class="flex flex-grow flex-col w-full-120px lg:w-2/3 order-2 text-white"><h3 class="_title_d4ajx_12 !text-base my-0 leading-[1.3rem] tracking-normal !font-lct" data-testid="title_link_5377564"><a class="inherit word-break hover:underline !text-gray-850" rel="noopener" title="The hidden environmental costs of tech giants’ AI investments" href="/wealth/wealth-investing/hidden-environmental-costs-tech-giants-ai-investments" target="_blank">The hidden environmental costs of tech giants’ AI investments</a></h3></div></div></div></div></div></div><div class="my-8 md:my-12 w-screen bg-gray-125 transition-all duration-300 border-gray-175 min-h-0 border-y-0 bg-none py-0" style="max-width:0px;margin-left:calc(-1*(0px - 100%) / 2 );height:0"><div data-component="component-container" class="container px-3 sticky top-[120px]"><div class="mx-auto w-full md:w-10/12 md:px-8 lg:w-8/12"><div class="text-center text-center" data-testid="advertisement-element"><div id="dfp-ad-imu2" class="adunit-component"></div></div></div></div></div><p class="mb-4 md:mb-6 leading-8 -tracking-5%" data-story-element="paragraph" data-testid="paragraph-component">Nvidia currently dominates the market for AI processors and counts Amazon among its long list of so-called hyperscaler customers.</p><p class="mb-4 md:mb-6 leading-8 -tracking-5%" data-story-element="paragraph" data-testid="paragraph-component">Still, Amazon has been working to develop its own chips through its Annapurna Labs division, which Anthropic said it was “working closely with” to aid in developing processors. Amazon has also been trying to build its own AI model code-named “Olympus,” which it has not released.</p><p class="mb-4 md:mb-6 leading-8 -tracking-5%" data-story-element="paragraph" data-testid="paragraph-component">Anthropic, co-founded by former OpenAI executives and siblings Dario and Daniela Amodei, said last year it had secured a US$500 million investment from Alphabet, which promised to invest another US$1.5 billion over time.</p><p class="mb-4 md:mb-6 leading-8 -tracking-5%" data-story-element="paragraph" data-testid="paragraph-component">The startup also uses Alphabet’s Google Cloud services as part of its operations. 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