New updates have been reported about Anthropic (PC:ANTPQ)
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Amazon is reportedly considering a substantial increase in its investment in Anthropic, a prominent competitor to OpenAI, as part of its strategic push into artificial intelligence. According to sources, Amazon is in discussions to inject several billion dollars into Anthropic, marking its first financial commitment since a $4 billion agreement last year. This potential investment is contingent upon Anthropic’s use of Amazon’s proprietary silicon, hosted on Amazon Web Services, for training its AI models.
Despite Anthropic’s preference for Nvidia chips, the financial offer from Amazon may be too enticing to decline, especially as the company anticipates significant expenditures. Earlier this year, Anthropic projected a cash burn of over $2.7 billion in 2024, driven by efforts to enhance and scale its AI offerings. The company is actively seeking new funding at a valuation of $40 billion, underscoring the urgency to secure additional capital. To date, Anthropic has raised $9.7 billion, positioning it as a formidable player in the AI sector, although still trailing behind OpenAI’s $21.9 billion in funding. This potential deal with Amazon could significantly bolster Anthropic’s financial and strategic positioning in the competitive AI landscape.