Amazon is investing up to $4 billion in AI startup Anthropic and taking a minority stake in the company as a part of a plan to keep Alexa at peace with new AI technology, reports the Associated Press.
Both companies said the deal is part of a much larger collaboration to develop foundation models, which are a specific type of generative AI, like ChatGPT. These models are pre-trained on a massive corpus of text data like blog posts, digital books, scientific articles, etc. to generate text reassembling human work.
Anthropic will make Amazon its primary cloud computing service and will use Amazon’s custom chips as part of training and designing its AI systems.
Anthropic was founded by former staff members from OpenAI, the company that produced the DALL-E and ChatGPT generative AIs. The company has released its own text generative AI called Claude, available in the U.S. and U.K.
With this deal, Amazon is trying to catch up with its rival companies like Microsoft, which invested $1 billion in OpenAI in 2019.
Amazon has been wanting to update Alexa with recent AI technology, so it can compete with other AI models and so users can have more human-like conversations.