Global AI ‘War Of Zhen’ Amazon Moves Again 3.7 Trillion Invested In Generative AI

Big tech companies’ artificial intelligence ( AI ) ‘War of Zhen’ is raising the stakes. In the era of generative AI , it seems like a life-or-death risk to not lose market and technological leadership.

Amazon, the world’s largest e-commerce company, announced on the 27th (local time) that it will invest an additional $2.75 billion (about 3.7 trillion won) in Anthropic , an AI startup that is a counterpart to Open AI . Including the $1.25 billion invested in September last year, the total accumulated investment is $4 billion (approximately 5.4 trillion won). Amazon’s latest investment is a winning move to win the cloud-based AI model competition with Microsoft ( MS ) and Google . CNBC , an American economic media outlet , assessed that “Amazon has made the largest external investment in its 30-year history.”

According to market research firm Pitchbook, the investment that went into AI companies last year amounted to $29 billion (about 39 trillion won). Microsoft is a representative big tech that leads this investment competition. Invested $13 billion (approximately 17.5 trillion won) in open AI . AI models such as Open AI ‘s GPT-4 are exclusively serviced through Microsoft’s cloud service Edger , threatening Amazon Web Services ( AWS ), the unrivaled leader in the cloud market.

Amazon is responding with anthropic investments. Anthropic, which received investment from Amazon, plans to use AWS cloud services as its main service infrastructure. Anthropic is an AI startup founded in San Francisco, USA in 2021 by siblings Dario and Daniela Ammerday, founders of Open AI . Anthropic CEO Dario Ammerday and his younger sister Daniela Ammerday are Open AI ‘s vice president of research and vice president of safety and policy, respectively.

Anthropic, founded by an Open AI founding member… Attracting trillions of dollars from Amazon, Google, etc.

Anthropic establishes its own ethical standards and places emphasis on safe AI development. Anthropic unveiled the first model of its self-developed AI model chatbot ‘Claude’ in March last year. Four months later, Claude 2 was released. Claude 3, released early this month after 8 months, is the latest model competing with Open AI ‘s GPT-4 . Claude 3 recently received attention ahead of Open AI ‘s GPT-4 for the first time in the ‘Chatbot Arena’, a ranking table where AI researchers and users measure and evaluate the abilities of AI models. Anthropic’s corporate value is soaring.

The corporate value recognized in this investment is $18.4 billion (approximately 24.8 trillion won). In addition, Anthropic received a total investment of $2 billion (about 2.7 trillion won) from not only Amazon but also Google. SK Telecom, a domestic company , invested $100 million in Anthropic, and LG CNS also made an equity investment through LG Technology Ventures. Through this investment, Amazon acquired a portion of Anthropic’s shares. However, he does not participate in the board of directors. It is explained as a decision that focuses on technological cooperation rather than management rights, similar to Microsoft ‘s decision not to participate in the Open AI board of directors.

Big tech’s investment craze in generative AI startups is expected to continue for the time being. Last month, Microsoft decided to invest 15 million euros (about 21.8 billion won) in Mistral AI , a French startup called ‘Europe’s open AI .’ According to Bloomberg, Cohere, an AI startup founded by former Google deep learning AI research team member Aidan Gomez, is also in the final stages of attracting $500 million (about 670 billion won) in investment. Cohere is a Toronto, Canada-based company that received attention last year by receiving $270 million (approximately 364 billion won) in investment from NVIDIA, Oracle, and Salesforce.

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