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Amazon’s Anthropic to get new multi-billion-dollar investment amidst intensifying rivalry with OpenAI

Amazon, the tech goliath, is mulling over another multi-billion dollar investment in its AI startup, Anthropic. This investment will be made in a bid to rev up the advancement of its said AI startup. According to a source privy to the discussions, the cloud computing giant had provided an investment of $4 billion last September into the AI startup and now was considering another major money injection.

Amazon first made an investment in Anthropic, an OpenAI rival, as an effort to also build its place in the AI market. The previous investment came with a promise to give early access to customers of Amazon Web Services ( AWS ) to test Anthropic's technology. This promise would attract Anthropic to deploy its services on the cloud infrastructure of Amazon, especially via servers of chips designed by Nvidia for AI processing.

Anthropic has been causing ripples in the AI world since its founding by former OpenAI executives Dario and Daniela Amodei. The company, started last year, already raised $500 million in funding from Alphabet, Google's parent company, and promised more than $1.5 billion over time. Anthropic relies heavily on Amazon's cloud services to train its AI models and was asked by Amazon to rely even more on servers powered by the cloud computing leader's custom-designed chips, according to the Reuters report.

Neither Amazon nor Anthropic has made public statements about the potential investment and details of the transaction. This would, however, make Amazon more prominent in the fray of AI dominance, which is increasingly dominated by some heavyweights - OpenAI, and Google, among others.

This multi-billion dollar deal highlights the fact that Amazon is committed to producing AI that can match the best that OpenAI has already built. However, this deal also underscores the fact that large technology firms are betting on AI, with ever-increasing resources being directed into its advancement-considered one of the biggest technological trends of recent times.