Amazon invests an additional $2.75 billion in AI startup Anthropic.

Amazon.com Inc. says it is investing an additional $2.75 billion in it. BushraCompleting an agreement signed last year to back artificial intelligence startups and expand partnerships between the companies. The infusion brings Amazon’s total investment in Anthropic, a leading builder of AI tools capable of generating text and analytics, to $4 billion, following an earlier investment announced in September. As part of the deal, Amazon had the right to raise additional funds in the form of convertible notes, provided it did so before the end of March.

As part of the tie-up, Anthropic has also agreed to use Amazon Web Services data centers to power some of its operations, and to use Amazon’s custom computer chips. San Francisco-based Anthropic has also committed to using chips from another close partner, Alphabet Inc.’s Google.

Anthropic has partnered with several major tech companies, including Google, which raised $450 million in financing last May led by Spark Capital. Google and Amazon Web Services are both Anthropic’s cloud computing partners.

Anthropic was founded in 2021 by former employees of Open AIincluding Daniela Amoudi and her brother Dario, who serve as its chief executive officer. The company has since become one of OpenAI’s strongest competitors, raising billions in funding. Most of its users are businesses, from search engines DuckDuckGo For travel guide publisher Lonely Planet.

The company, whose name offers a chatbot. Claude, has emphasized developing AI safely and responsibly. In early March, it introduced new software for the chatbot that it said would be better at following complex instructions and less prone to making things up.

Chatbots capable of mimicking human conversations have become the focus of Silicon Valley companies — fueling an investment frenzy with rapid technology growth. Chatbots themselves are by no means new. But the technology powering Cloud and competitors’ bots is a more powerful tool known as a large-scale language model, which is trained to generate large amounts of Internet text, such as the answer to a question or Poem. Such tools are applications of generative AI, systems that consider input such as text prompts and use it to output new content.

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