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How Amazon Stumbled in AI, Giving Microsoft an Opening
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Amazon to Invest Up to $4 Billion in Anthropic as AI Arms Race Escalates
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How Amazon Stumbled in AI, Giving Microsoft an Opening
Long before ChatGPT arrived on the scene last year, Amazon Web Services was developing artificial intelligence software akin to the technology that powers the hit chatbot from OpenAI. AWS had hoped to unveil the software, then known inside the company as Bedrock, at its annual customer conference late last November, but had to postpone it due to technical snags, a person with direct knowledge of the company’s plans said. That ended up being a fortunate decision.
A couple days into the conference, OpenAI released ChatGPT, immediately wowing the tech world with the software’s ability to generate humanlike responses to questions. AWS leaders soon realized Bedrock wasn’t on the same level as OpenAI’s AI software, the person said. But AWS had to do something, its leaders felt. AWS was the No. 1 provider of cloud services, while OpenAI had formed a tight relationship with AWS’ biggest nemesis, Microsoft.
by Anissa Gardizy and Kevin McLaughlin of The Information(hard paywalled)
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Amazon to Invest Up to $4 Billion in Anthropic as AI Arms Race Escalates
The deal, which includes broad partnership, follows Microsoft’s multibillion-dollar stake in rival startup OpenAI
Amazon said it has agreed to invest up to $4 billion in artificial-intelligence company Anthropic, the latest big startup investment by tech giants jockeying for an edge in the AI arms race. Amazon said that, as part of the deal, Anthropic would be using its custom chips to build and deploy its AI software. Amazon also agreed to incorporate Anthropic’s technology into products across its business.
Anthropic, founded in 2021, offers an AI assistant called Claude that competes with ChatGPT. Led by siblings Dario and Daniela Amodei, who both used to work at OpenAI, the company claims its technology is safer and more reliable than that of competitors.
Large language models, the algorithms that power chatbots such as ChatGPT and Claude, require huge amounts of capital to build and train, and startups spend that money largely on cloud-computing costs. Of the billions of dollars that OpenAI has raised from Microsoft, much of it has been spent on the tech giant’s AI business Azure…
-Tom Dotan, Berber Jin and Deepa Seetharaman, Wall Street Journal
SBalley Team, Cheers!