The Race for AI Dominance Continues: Amazon Backs Anthropic With a $4 Billion Investment
This strategic move by Amazon comes as its competitors in the cloud computing sector are expanding, aiming to solidify its position in the burgeoning artificial intelligence market.
Under the terms of this partnership, Amazon’s employees and cloud clientele will gain privileged access to the diverse array of technologies offered by Anthropic. Furthermore, the San Francisco-based company has committed to utilizing Amazon’s cloud services exclusively, including the utilization of custom chips procured from the online retail giant for training its future AI models.
In the subsequent discussion, we will delve into the intricacies of Amazon’s latest venture and assess how it compares to OpenAI’s widely acclaimed large language model, ChatGPT.
What to Know About Anthropic
Anthropic is an AI research and security company headquartered in San Francisco in the US. The company was founded in 2021 by siblings Dario Amodei, CEO, and Daniela Amodei, CTO, both of whom had previously worked on the senior team at OpenAI.
The company characterizes itself as being committed to the development of AI systems that can be trusted by individuals, as well as the production of research pertaining to the potential benefits and hazards associated with AI. Anthropic fundamentally embodies a set of principles centered on the safety of AI and the conscientious and responsible development and use of the technology.
In March of this year, Anthropic debuted Claude, a cutting-edge AI assistant designed to compete with ChatGPT; the new model, Claude 2, followed shortly after in July. Claude 2 has improved performance, lengthier responses, is simple to converse with, plainly articulates its thought process, is less likely to generate harmful outputs, and has a larger memory. Additionally, the company made changes from their previous models in the areas of coding, mathematics, and reasoning.
Amazon will spend $1.25 billion initially and acquire a minority share in Anthropic without a board seat. The company has said that it has the option of eventually increasing its investment to $4 billion.
Open AI/ Microsoft leading the charge
Silicon Valley power duo OpenAI and Microsoft are one of the main driving forces in the AI space at present with Microsoft having invested many billions of dollars into OpenAI throughout the years. Microsoft put almost $10 billion into the artificial intelligence company earlier this year and controls almost half of OpenAI.
OpenAI is best known for creating the sophisticated AI language model known as ChatGPT. It marks a huge advancement in natural language processing, allowing AI to produce text replies that are conversational, intelligible, contextually relevant, and almost human-sounding.
OpenAI generates revenue via the monetization of its services, which primarily involves the provision of paid access to advanced versions of ChatGPT, as well as the licensing of the underlying technological framework to commercial entities. Just last month, OpenAI projected a $1 billion income year by the end of 2023.
According to the Wall Street Journal today, OpenAI is in discussions with investors about a possible share sale that might value the enterprise at $80 billion to $90 billion.
The article, which cited unnamed individuals involved with the conversations, suggested such a valuation would be close to three times what the artificial intelligence firm was valued at early this year.
Claude 2 VS ChatGPT 4
At about $11 per million tokens, Claude 2 is much less expensive than GPT 4, and its 100 thousand context window is much larger than GPT 4’s 32 thousand. The new model excels at ingesting and comprehending extremely huge volumes of material; it can, for instance, summarize books with a word count of up to 75,000.
It is obviously newer than OpenAI’s ChatGPT, and can score lower on several tests and exams. Also, it has been known to make occasional factual inaccuracies but so has GPT 4.
GPT 4 operates well in response to textual or visual cues because it sifts through so much data and communication. It excels at answering questions, telling stories and resolving complex problems. It can also produce sophisticated essays, jokes, code, and more.
It’s difficult to determine which model is superior when it comes to large language models until Claude 2 has been around in the marketplace for a little longer. Nonetheless, Claude 2 is quickly emerging as a formidable rival in the AI race.
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