Amazon doubles Anthropic, completes its planned $4B investment | Tech Crunch

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Amazon invested another $2.75 billion in growing AI power Anthropic on Wednesday, following an option it opened last September. At that point the $1.25 billion it invested must have produced results, or they might have realized there were no other horses available for the back.

The September deal gave the company $1.25B in exchange for a minority stake, and certain tit-for-tat agreements such as Anthropic continuing to use AWS for its extensive computing needs.

Amazon reportedly had until the end of the first quarter to decide whether to raise its investment to the maximum of $4B, and here we are before the deadline and the company has decided to throw in the maximum amount.

Anthropic's AI models are among the very few that compete with the highest level of efficiency (however you define that) available at scale for enterprises to deploy internally or in consumer-facing applications. OpenAI's GPT series and Google's Gemini are up there, but upstarts like Mistral may soon threaten that fragile triumvirate.

Lacking the ability to develop suitable models on their own for whatever reason, companies such as Amazon and Microsoft have had to be adversely affected by others, mainly OpenAI and Anthropic. Both have benefited enormously from allying with one or the other of these moneyed rivals and have yet to see much downside.

What we can take from Amazon's decision to invest the maximum (one must imagine) after taking a closer look at how the AI ​​sausage is made there, is really very little.

It makes strategic sense for these companies, who have enormous war chests saved up for exactly this purpose (when most rivals can't innovate them), to pour cash into the AI ​​field. Right now the world of AI is like a roulette table, with OpenAI and Anthropic representing the black and red colors. No one knows where the ball will land, least of all the companies that couldn't predict or create this technology. But if your bitter enemy has their chips on red, it only makes sense for you to bet on black.

Especially if you can bet on a discount on the block — Amazon's got it here, because it can invest in Anthropic's September valuation, which is certainly lower than it is today.

If things look sketchy there — the way they see an inflection before Microsoft pounces on it — Amazon could pull back or invest less than the full subsidiary's $2.75 billion. But that may have sent a confusing signal that no one wants out, least of all the existing multi-billion dollar investors.

We know Anthropic has a plan, and this year we'll find out what Amazon, Apple, Microsoft, and other multinational interests can do to monetize this revolutionary technology.



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