Amazon is making a significant move in the AI sector with a $4 billion investment in AI startup Anthropic. Founded by former OpenAI employees Dario and Daniela Amodei, Anthropic is a direct competitor to OpenAI and has gained recognition for its AI assistant Claude.

As part of the investment, Amazon will acquire a minority stake in Anthropic, and the startup will use Amazon Web Services (AWS) proprietary chips for developing, training, and deploying its AI software. AWS will become Anthropic’s primary cloud provider, and Amazon will offer early access to Anthropic’s technology through Amazon Bedrock, its AI platform for businesses.

This investment is seen as Amazon’s effort to stay competitive in the growing AI sector, where Microsoft has made significant financial commitments to OpenAI, and Google has also invested in Anthropic. It reflects the increasing interest and competition among tech giants in the AI field.