{"id":2474338,"date":"2023-09-28T00:38:01","date_gmt":"2023-09-28T04:38:01","guid":{"rendered":"https:\/\/www.valuewalk.com\/?p=2474338"},"modified":"2023-09-28T00:38:02","modified_gmt":"2023-09-28T04:38:02","slug":"ai-race-accelerates-with-amazons-investment-in-anthropic","status":"publish","type":"post","link":"https:\/\/www.valuewalk.com\/ai-race-accelerates-with-amazons-investment-in-anthropic\/","title":{"rendered":"AI Race Accelerates with Amazon&#8217;s Investment In Anthropic"},"content":{"rendered":"\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul>\n<li>Amazon is investing up to $4 billion in generative AI firm Anthropic, a ChatGPT rival.<\/li>\n\n\n\n<li>While Amazon has used AI for various applications, this investment signals a more significant move into the AI space.<\/li>\n\n\n\n<li>Amazon joins other big tech companies like Alphabet and Microsoft in investing in Anthropic.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.marketbeat.com\/newsletter\/PDFoffer.aspx?offer=top5&amp;RegistrationCode=ArticlePage-KeyPoints\" target=\"_blank\">5 stocks we like better than Amazon.com<\/a><\/li>\n<\/ul>\n\n\n\n<p><a href=\"https:\/\/www.marketbeat.com\/stocks\/NASDAQ\/AMZN\/\" target=\"_blank\">Amazon.com Inc. (NASDAQ:AMZN)<\/a> hasn\u2019t been among the tech names most investors think of when considering AI plays, but that may change.&nbsp;<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Find A Qualified Financial Advisor<\/strong><\/p>\n\n\n\n<p>Finding a qualified financial advisor doesn&#8217;t have to be hard. <a href=\"https:\/\/smartasset.com\/retirement\/find-a-financial-planner?utm_source=valuewalk&amp;utm_campaign=val__falc_blurb&amp;utm_content=blurb_v1\" rel=\"nofollow\" target=\"_blank\">SmartAsset&#8217;s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes<\/a>.<\/p>\n\n\n\n<p>Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.<\/p>\n\n\n\n<p>If you&#8217;re ready to be matched with local advisors that can help you achieve your financial goals, <a href=\"https:\/\/smartasset.com\/retirement\/find-a-financial-planner?utm_source=valuewalk&amp;utm_campaign=val__falc_blurb&amp;utm_content=blurb_v1\" rel=\"nofollow\" target=\"_blank\">get started now<\/a>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div class=\"ca-widget\" data-token=\"k8f5c9ac62a4\"><\/div><script async defer src=\"https:\/\/secure.money.com\/embeds\/embedder.js?v=1\"><\/script>\n\n\n\n<p>The company said it\u2019s investing as much as $4 billion into privately held generative AI firm Anthropic, and may take a minority ownership stake.&nbsp;<\/p>\n\n\n\n<p>Although Amazon has been using AI technologies for applications such as personalized recommendations, transcription of text and other analysis of customer and business data, the Anthropic investment signals that the company is entering the AI fray with other big techs like <a href=\"https:\/\/www.marketbeat.com\/stocks\/NASDAQ\/GOOGL\/\" target=\"_blank\">Alphabet Inc. (NASDAQ:GOOGL)<\/a> and <a href=\"https:\/\/www.marketbeat.com\/stocks\/NASDAQ\/MSFT\/\" target=\"_blank\">Microsoft Corp. (NASDAQ:MSFT)<\/a>.&nbsp;<\/p>\n\n\n\n<p>Amazon isn\u2019t the first big tech company to make a hefty <a href=\"https:\/\/www.marketbeat.com\/originals\/can-you-buy-anthropic-stock-a-guide\/\" target=\"_blank\">investment in Anthropic<\/a>.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Rival to OpenAI&#8217;s ChatGPT<\/h2>\n\n\n\n<p>In February 2023, Alphabet invested $300 million in Anthropic, for a 10% ownership stake. Anthropic which was established by former OpenAI employees. Its generative language AI model, Claude, is a rival to OpenAI&#8217;s ChatGPT.&nbsp;<\/p>\n\n\n\n<p><a href=\"https:\/\/www.marketbeat.com\/stocks\/NYSE\/CRM\/\" target=\"_blank\">Salesforce Inc. (NYSE:CRM)<\/a> is also an Anthropic backer, investing $250 million in March. German enterprise software giant <a href=\"https:\/\/www.marketbeat.com\/stocks\/NYSE\/SAP\/\" target=\"_blank\">SAP SE (NYSE:SAP)<\/a> invested in July, and South Korean wireless carrier <a href=\"https:\/\/www.marketbeat.com\/stocks\/NYSE\/SKM\/\" target=\"_blank\">SK Telecom Co. Ltd. (NYSE:SKM)<\/a> kicked in $100 million in August.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Anthropic and ChatGPT are not the only AI startups that big tech is flinging money at. In April, Google inked a deal to invest $75 million in Runway, which can generate videos from text verbiage.&nbsp;<\/p>\n\n\n\n<p>Meanwhile, Microsoft is an early backer of ChatGPT\u2019s parent company, OpenAI, investing an almost staggering $13 billion, beginning in 2019.&nbsp;<\/p>\n\n\n\n<p>Large-cap <a href=\"https:\/\/www.marketbeat.com\/stocks\/sectors\/computer-and-technology\/\" target=\"_blank\">tech stocks<\/a> as a whole surged earlier this year as investors and traders bet on massive industry expansion due to AI. Chipmaker <a href=\"https:\/\/www.marketbeat.com\/stocks\/NASDAQ\/NVDA\/\" target=\"_blank\">Nvidia Corp. (<span data-prefix=\"NASDAQ\" data-symbol=\"NVDA\">NASDAQ:NVDA)<\/span><\/a> was the largest beneficiary, advancing as much as 244% year-to-date, before pulling back this month.\u00a0<\/p>\n\n\n\n<p>While investment in AI as a technology is likely to continue at a rapid pace, as indicated by Amazon\u2019s move, some of the excitement has ebbed.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Tech Down on AI Lull, Fed Rate Hikes<\/h2>\n\n\n\n<p>The <a href=\"https:\/\/www.marketbeat.com\/stocks\/NYSEARCA\/XLK\/\" target=\"_blank\">Technology Select Sector SPDR Fund (NYMARKET:XLK)<\/a> is down 2.09% in the past month. Not all of that decline can be attributed to a lull in attention paid to AI, though. The Federal Reserve\u2019s signal that it will continue increasing interest rates affected the tech sector, which is generally sensitive to rate hikes.&nbsp;<\/p>\n\n\n\n<p>In its news release <a href=\"https:\/\/press.aboutamazon.com\/2023\/9\/amazon-and-anthropic-announce-strategic-collaboration-to-advance-generative-ai\" rel=\"nofollow\" target=\"_blank\">announcing the Anthropic deal<\/a>, Amazon also noted that Anthropic would be using Amazon\u2019s AWS as its primary cloud provider and would train and deploy its future foundation models on AWS Trainium and Inferentia chips.&nbsp;<\/p>\n\n\n\n<p>AI competition is heating up as a growing number of techs invest in various technologies. For example, Amazon developed the Trainium and Inferentia chips as alternatives to Nvidia products, which Amazon said in August \u201chave become expensive and a bit hard to come by.\u201d&nbsp;<\/p>\n\n\n\n<p>Amazon said it is continuing to use Nvidia chips in its AI stack, with the Trainium and Inferentia chips deployed in a different layer.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Anthropic the Bedrock of New Amazon Applications<\/h2>\n\n\n\n<p>Amazon said its developers and engineers will be able to build with Anthropic models to incorporate generative AI capabilities throughout existing applications, as well as developing new ones.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Many of Amazon\u2019s additional generative AI capabilities are intended for Amazon Bedrock, a managed service under the AWS banner that helps business customers build, train and deploy machine-learning models.&nbsp;<\/p>\n\n\n\n<p>Amazon says customers accessing Anthropic\u2019s current models via Amazon Bedrock are building generative AI-powered applications to produce market forecasts, research reports, new drug discovery and educational programs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">High-Profile Customers<\/h2>\n\n\n\n<p>Customers using the software include travel media company Lonely Planet, hedge fund Bridgewater Associates and database specialist LexisNexis Legal &amp; Professional.<\/p>\n\n\n\n<p>Amazon shares were trading higher on September 25, but it\u2019s not clear how much the Anthropic announcement affected trading, if at all. The broader tech sector was up as well, as was Nvidia.&nbsp;<\/p>\n\n\n\n<p>Even if the initial enthusiasm over chatbots has faded, Amazon\u2019s plans for Bedrock, along with Anthropic\u2019s ability to garner investment from such a wide spectrum of tech companies, shows the technology still has a bright future beyond <a href=\"https:\/\/www.marketbeat.com\/originals\/ai-over-is-slowdown-in-chatgpt-traffic-a-sign-of-ai-fatigue\/\" target=\"_blank\">helping students cheat on term papers<\/a>.&nbsp;<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.marketbeat.com\/newsletter\/PDFoffer.aspx?offer=top5&amp;RegistrationCode=ArticlePage-ShouldYouInvest\" target=\"_blank\">Should you invest $1,000 in Amazon.com right now?<\/a><\/strong><\/p>\n\n\n\n<p>Before you consider Amazon.com, you&#8217;ll want to hear this.<\/p>\n\n\n\n<p>MarketBeat keeps track of Wall Street&#8217;s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the <a href=\"https:\/\/www.marketbeat.com\/newsletter\/PDFoffer.aspx?offer=top5&amp;RegistrationCode=ArticlePage-ShouldYouInvest\" target=\"_blank\">five stocks<\/a> that top analysts are quietly whispering to their clients to buy now before the broader market catches on&#8230; and Amazon.com wasn&#8217;t on the list.<\/p>\n\n\n\n<p>While Amazon.com currently has a &#8220;Moderate Buy&#8221; rating among analysts, top-rated analysts believe these five stocks are better buys.<\/p>\n\n\n\n<p><em><strong>The post <a href=\"https:\/\/www.marketbeat.com\/originals\/ai-race-accelerates-with-amazons-investment-in-anthropic\/\" target=\"_blank\">AI Race Accelerates with Amazon&#8217;s Investment In Anthropic<\/a> appeared first on <a href=\"https:\/\/www.marketbeat.com\/\" target=\"_blank\">MarketBeat<\/a>.<\/strong><\/em><\/p>\n ","protected":false},"excerpt":{"rendered":"<p>Key Points Amazon.com Inc. (NASDAQ:AMZN) hasn\u2019t been among the tech names most investors think of when considering AI plays, but &#8230; <a title=\"AI Race Accelerates with Amazon&#8217;s Investment In Anthropic\" class=\"read-more\" href=\"https:\/\/www.valuewalk.com\/ai-race-accelerates-with-amazons-investment-in-anthropic\/\" aria-label=\"More on AI Race Accelerates with Amazon&#8217;s Investment In Anthropic\">Read more<\/a><\/p>\n","protected":false},"author":21965,"featured_media":2456870,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6640],"tags":[659025,647129,645498],"states":[],"acf":[],"modified_by":"Umair Tariq","_links":{"self":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/posts\/2474338"}],"collection":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/users\/21965"}],"replies":[{"embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/comments?post=2474338"}],"version-history":[{"count":4,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/posts\/2474338\/revisions"}],"predecessor-version":[{"id":2474342,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/posts\/2474338\/revisions\/2474342"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/media\/2456870"}],"wp:attachment":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/media?parent=2474338"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/categories?post=2474338"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/tags?post=2474338"},{"taxonomy":"states","embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/states?post=2474338"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}