Amazon is investing up to $4 billion in generative AI firm Anthropic, a ChatGPT rival. While Amazon has used AI for various applications, this investm
While Amazon has used AI for various applications, this investment signals a more significant move into the AI space.5 stocks we like better than Amazon.com.
Although Amazon has been using AI technologies for applications such as personalized recommendations, transcription of text and other Salesforce Inc. is also an Anthropic backer, investing $250 million in March. German enterprise software giant SAP SE invested in July, and South Korean wireless carrier SK Telecom Co. Ltd. kicked in $100 million in August.
Large-cap tech stocks as a whole surged earlier this year as investors and traders bet on massive industry expansion due to AI. Chipmaker Nvidia Corp. was the largest beneficiary, advancing as much as 244% year-to-date, before pulling back this month. Amazon said it is continuing to use Nvidia chips in its AI stack, with the Trainium and Inferentia chips deployed in a different layer. 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.
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