Amazon Anthropic deal is worth $4 billion. Should Google be worried?

The Amazon Anthropic deal has just been announced today. The agreement, which is worth $4 billion, is said to challenge Microsoft and Google in the ongoing AI war between companies. 

As announced on the company’s blog, Anthropic will use ASW service to build its future models, while Amazon devs will build with the models via AWS’ Bedrock service.

Andy Jassy, Amazon CEO, said that the “deeper collaboration” will be beneficial for both short and long-term customer experiences.

Jassy also mentioned that customers are excited about Amazon Bedrock, a new AWS service that enables companies to build generative AI applications on top of various foundation models, as well as AWS Trainium, AWS’s AI training chip.

For context, Google invested $300 million in Anthropic last year, and Anthropic’s co-founder Dario Amodei said that “nothing has changed” between the startup and Google despite this Amazon partnership. 

Amazon will give Anthropic $1.25 billion in exchange for a small ownership stake in the company, and it will have the option to invest more money in Anthropic in the future, up to a total of $4 billion.

Elsewhere in the AI war, Anthropic has just launched Claude Pro to rival OpenAI’s ChatGPT Plus not too long ago.