Amazon (NASDAQ:AMZN) announced a $5 billion investment in AI firm Anthropic and committed to another $20 billion in future investments. Amazon previously invested $8 billion in Anthropic.
Anthropic and Amazon are deeply intertwined, as Anthropic’s Claude Platform is available on AWS and has now committed to securing up to 5 gigawatts of Amazon’s Trainium Chips, boosting Amazon’s competition with Nvidia. Anthropic is expected to spend over $100 billion on AWS during the next ten years.
Anthropic is expected to purchase future versions of Amazon’s AI chips, including “tens of millions” of Graviton CPU chips.
Anthropic is already using AWS Trainium and Graviton
Amazon shared that more than 100,000 customers run Anthropic Claude models on AWS. The two companies are collaborating on Project Rainier, a very large AI compute cluster with nearly half a million Trainium2 chips, to advance AI development.
Andy Jassy, CEO of Amazon, explained that Amazon’s chips deliver higher performance at lower cost to users.
“Anthropic’s commitment to run its large language models on AWS Trainium for the next decade reflects the progress we’ve made together on custom silicon, as we continue delivering the technology and infrastructure our customers need to build with generative AI.”
Dario Amodei, CEO and co-founder of Anthropic, said they need to keep pace with demand for Claude, and the partnership with Amazon will enable them to scale their AI services.
Amazon touts that over 100,000 organizations are running Claude models on Amazon Bedrock.
Last week, Q2 Holdings (NYSE: QTWO), a Fintech that provides banking software, announced it would build its digital banking platform on Claude and Amazon Bedrock.
Shares of Amazon jumped in after-hours trading following the news.
