Amazon is investing an initial $5 billion in AI research firm Anthropic.
The total investment could eventually reach $25 billion.
This strategic partnership counters Microsoft’s multi-billion dollar backing of OpenAI.
Anthropic committed to spending over $100 billion on Amazon Web Services (AWS) over the next 10 years.
The AI firm will use AWS’s custom Trainium and Graviton chips to build its Claude foundation models.
The agreement secures a massive long-term customer for Amazon’s cloud and custom silicon business.