Amazon will invest up to $4bn (£3.3bn) in rising artificial intelligence (AI) startup Anthropic, the tech giant said.
Amazon will inject and initial $1.25bn into the US-based firm, which could potentially increase to $4bn later on.
As part of the deal, Anthropic’s AI products, including its Claude chatbot, will become part of Amazon Web Services’ (AWS) Bedrock service, enabling customers to build generative AI applications in the cloud.
Adam Selipsky, Amazon Web Services’s chief executive, said the deal will help make Anthropic’s models better, while also improving Amazon’s chip technology and our AI infrastructure.
Amazon shares nudged up over one per cent on Monday following the news.
Nigel Green, chief executive of financial advisory group Devere, said: “The AI Race is on, with the big tech firms racing to lead in the development, deployment, and utilisation of artificial intelligence technologies.
“AI is going to reshape whole industries and fuel innovation – and this makes it crucial for investors to pay attention and why almost all investors need exposure to AI investments in their portfolios,” he added.