Amazon looking at making additional investment in Anthropic: report

• Amazon (NASDAQ:AMZN) has discussed making an additional investment into generative artificial intelligence startup Anthropic, The Information reported.
• The size of the second investment could be multiple billions of dollars, the news outlet added, citing a person involved in the discussions. Amazon has already spent $4B investing into the company, but this time, the agreement may require Anthropic to use servers that are powered by Amazon’s artificial intelligence chips, the person added. Amazon unveiled two of its AI-focused chips, Graviton4 and Trainium2, in November 2023.
• Anthropic has traditionally used chips created by Nvidia (NVDA), which dominates the AI accelerator market with an estimated market share north of 70%.
• Last month, it was reported that Anthropic was in talks with investors to raise additional funding at a valuation that could approach $40B. OpenAI, which is backed by Microsoft (MSFT) and competes with Anthropic, raised $6.6B that valued the company at $157B, making it the second-highest valued startup in the world.
• Amazon declined to comment, while Anthropic did not immediately respond to a request for comment from Seeking Alpha.

(This story has been updated to reflect Amazon declined to comment.)