Since the launch of ChatGPT, Amazon (AMZN) has often been perceived as a follower in the field of artificial intelligence among the big tech companies, whether this perception is fair or not.
Microsoft invested in OpenAI as early as 2019 and leveraged the launch of ChatGPT as an opportunity to drive industry transformation. Alphabet was poised and ready, having long prepared to launch its own large language model (LLM). Even Meta Platforms quickly followed up by releasing its own LLM and chatbot platform, Meta AI. In contrast, Amazon seemed somewhat unprepared for the AI transformation. However, the company later introduced Amazon Bedrock, a managed service based on Amazon Web Services (AWS), enabling users to access various AI models.
Additionally, Amazon launched its self-developed large language model, Nova, though its market reception has been far less enthusiastic compared to similar products from its peers. The company has also developed specialized chips for AI training (Trainium) and inference (Inferentia), aiming to build a more comprehensive AI infrastructure. Nevertheless, in recent years, the growth rate of Amazon’s cloud computing business has lagged behind that of Microsoft and Alphabet, seemingly reinforcing the market’s perception of its delayed AI development.
Perhaps Amazon’s most strategic move in the AI field is its $8 billion investment in Anthropic, the startup behind the Claude chatbot, and the establishment of a deep partnership with it. As Anthropic’s valuation soars to $183 billion, this decision is demonstrating its foresight.
Anthropic completed a new round of funding this Tuesday, with its valuation nearly tripling in just six months from $61.5 billion to $183 billion—a remarkable achievement.
