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Amazon’s investing billions in OpenAI rival Anthropic as tech biggies race to take on ChatGPT

Snacks / Tuesday, September 26, 2023

Battle of the (chat) bots… Yesterday Amazon said it would invest up to $4B and take a minority stake in AI startup Anthropic. Refresher: Anthropic debuted its AI-powered chatbot (Claude) back in March, and this month it launched a $20/month premium sub plan. Now the e-comm giant will serve as Anthro’s primary cloud partner, and said it plans to use the startup’s tech to improve its biz.

3-hour online convo… with no one on the other end. Amazon’s Anthropic deal follows a trend popularized by cloud heavyweight Microsoft, which made waves after investing $1B in OpenAI in 2019. This year Microsoft upped its investment to $10B with plans to incorporate ChatGPT tech into consumer products like Bing search. Others are playing catch-up, with analysts saying genAI bots could eventually have over a billion users. 

  • Bot buddies: Last week Google connected its AI chatbot, Bard, to YouTube and Gmail. 

  • IG-AI: Meta’s reportedly planning to launch its own AI chatbots across its social-media apps as soon as this week.

Deep pockets can power big disruptors… By working with tech titans like Amazon and Microsoft, AI startups get an opportunity to supercharge growth. Think: access to huge consumer databases and costly computer servers. While ChatGPT is quickly becoming a household name, only about 18% of US adults have ever used it — leaving plenty of room for the competition. It’s estimated that, as of next year, more than a third of the US population will use GenAI tools like ChatGPT at least once a month.

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