Amazon takes on Microsoft as it invests billions in Anthropic
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Artificial intelligence is the latest multi-billion dollar investment in a race between big tech firms.

Earlier this year, Amazon announced it would use artificial intelligence to enhance Alexa’s conversational abilities.

Claude is Anthropic’s ChatGPT rival.

According to Amazon, the investment could improve customer service.

In terms of generative AI, Jim Hare of Gartner told News that this is just the beginning of the race.

Microsoft had initially reaped the most benefit from the enthusiasm for AI through its partnership with OpenAI, but others were catching up.

In other words, it’s no longer just Microsoft-OpenAI showing off. Other cloud providers are now investing more in generative AI, and I think the playing field is leveling off.

Anthropic, founded in 2021, is one of several AI start-ups that have recently emerged to compete with Google DeepMind and OpenAI.

Amazon also provides cloud computing services in addition to online retail. It rents out computing power – housed in huge warehouses full of computers called data centres – to other firms for data storage and processing.

As a result of this collaboration, Anthropic will be able to access this huge amount of computing power.

By using Claude 2, Anthropic’s latest AI model, Amazon developers will be able to create new applications for their customers and enhance existing ones.

Azure, Microsoft’s cloud computing service, has a similar arrangement with OpenAI.