Amazon fulfilled it’s promised $4 billion investment into Anthropic this week with the last $2.75 billion. This finishes the $4 billion investment announced awhile ago and leaves Anthropic with an over $18 billion valuation.
The tech giant said it will spend another $2.75 billion backing Anthropic, a San Francisco-based startup that’s widely viewed as a front-runner in generative artificial intelligence. Its foundation model and chatbot Claude competes with OpenAI and ChatGPT.
The companies announced an initial $1.25 billion investment in September, and said at the time that Amazon would invest up to $4 billion. Wednesday’s news marks Amazon’s second tranche of that funding.
https://www.cnbc.com/2024/03/27/amazon-spends-2point7b-on-startup-anthropic-in-largest-venture-investment.html
Anthropic is one of the few companies whose AI model can directly compete with the leading model ChatGPT 4. Anthropic’s model Claude 3 has shown great promise even if some users find Claude’s habit of referring to itself as “I” creepy.
I would guess that Anthropic’s new cash will go mostly to server costs (cloud computing, servers, GPUs). Nvidia’s new Blackwell architecture alone costs something like $40,000. It only gets worse from there seeing as you have to have even more computing power behind those GPU’s. It all adds up to a very large fortune… so it’s good to see Anthropic getting the resources it needs to continue competing with OpenAI’s ChatGPT 4.
Now let’s see who else will get a big fat investment!
Maybe Mistral? Surely they could use $10 billion lol