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Amazon ignites competition with Microsoft and invests $4 billion in artificial intelligence.

Amazon ignites competition with Microsoft and invests $4 billion in artificial intelligence.

By Mohamed Nassar

Published: September 26, 2023


Amazon announced that it will invest 4 billion US dollars in the artificial intelligence company "Anthropic," based in San Francisco, reflecting the fierce competition between Amazon and Microsoft in the field of artificial intelligence.

This is the latest major investment in this field amid the fierce competition between major companies worldwide to exploit the potential of artificial intelligence.

Amazon previously stated that it would use artificial intelligence to support its voice assistance service "Alexa," enhancing its ability to converse with users.

The company "Anthropic" has a program called "Claude," which is its competitor to "ChatGPT."

James Her from Gartner Research said: "If we look at what is happening in the field of 'generative' artificial intelligence, we will find that this is just the beginning of the race."

He commented that Microsoft is currently the biggest beneficiary, stating: "We are beginning to see other cloud service providers investing more in generative artificial intelligence and launching their own announcements and products, and I believe opportunities are starting to equalize, in other words, the field is not limited to Microsoft and its OpenAI service."

Founded in 2021, "Anthropic" is a company specializing in safety and research in the field of artificial intelligence and is one of many emerging artificial intelligence companies that have recently emerged to compete with firms like Google, DeepMind, and OpenAI.

In addition to online retail, Amazon rents out computing power—which is housed in massive warehouses filled with computers called data centers—to other companies to help store or process their data.

This collaboration means that "Anthropic" will be able to rely on this vast computing power.

A few days after Amazon announced the development of its "Alexa" service with artificial intelligence, OpenAI announced on Monday that users of "ChatGPT" will be able to ask questions vocally, interact with the app, and send images, indicating enhancements to "ChatGPT's" capabilities to converse with users.

The collaboration with the owners of "ChatGPT" allows Microsoft to announce a range of artificial intelligence-related developments in the applications available to its users.

The deal, according to Nick Bichansky, senior AI analyst at S&P Global, is an important symbolic step indicating the entry of giant companies like Amazon and Google into the race for artificial intelligence applications, competing for dominance against Nvidia in the profitable market for AI chips.

Nick added to the BBC that regardless of the massive investments by big companies in artificial intelligence, it is unlikely that they will dominate this industry.

Anthropic stated that Amazon would acquire a minority stake and expressed its belief in responsible development and the dissemination of artificial intelligence. The company added that both companies independently supported a set of voluntary safety commitments led by the White House.

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