After Amazon (AMZN) announced yesterday that it made an additional $2.75B investment in the GenAI startup Anthropic, builder of the GenAI chatbot “Claude,” BofA noted that Claude 3 recently passed ChatGPT-4 to reach the number one rank in the “Chatbot Arena”, a leaderboard of chatbots based on votes by independent AI researchers, marking the first time at the top of the board for Anthropic. Amazon’s backing of Anthropic suggests belief in Claude’s capabilities, perhaps more than Amazon’s own internal large language model, or LLM, that is reportedly in development, says the analyst. While investors may view Amazon as behind Microsoft’s (MSFT) Azure in GenAI capabilities in the cloud, this perception gap could converge as Anthropic capabilities converge with ChatGPT and AWS starts to benefit more from AI-driven demand growth, added the analyst, who keeps a Buy rating and $204 price target on Amazon shares.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on AMZN:
- Altimeter Capital Shows Faith in TSLA and GOOGL Stocks
- Amazon (NASDAQ:AMZN) Boosts Anthropic Investment, Intensifies AI Push
- Legal Experts Predict Apple’s (NASDAQ:AAPL) Victory Amid DOJ Lawsuit
- Amazon fined nearly $8M in Poland over sales practices, TechCrunch reports
- Audible, Amazon MGM to co-develop, co-produce podcast slate