- Amazon makes a massive investment of around $1.4 billion to an AI startup. So, this investment might grow to $4 billion.
- FTX Exchange might benefit from this new investment.
Amazon is one of the biggest tech companies, and they are always keen on keeping up with the latest trends. So, a new development is that they made an investment in an AI startup backed by FTX.
Amazon to Invest $1.2 Billion on an FTX-Backed AI Firm
- According to a new report from the Financial Times, Amazon will be investing a whopping $1.2 billion in an artificial intelligence firm. However, what many consider a downside to this investment is that this firm was under the backing of FTX before the collapse. The tech giant will invest $1.25 billion for a minority stake in Artificial Intelligence company Anthropic. So, the Financial Times says there’s already an agreement between the parties in the deal.
- According to more details from this report, Amazon is taking this new step for a particular reason. So, the tech giant wants to keep up with many of its competitors. Companies like Google and Microsoft are already taking a huge step forward in the AI sector. So, Amazon is trying to do the same thing.
More Details About the New Deal
- For this new deal, the initial investment will be around $1.2 billion through its Web Services. However, there are predictions of a long-term investment from the tech giant, which will take the whole package to around $4 billion. According to the Financial Times, Amazon is trying to recreate the same deal involving Microsoft and OpenAI. So, this time of deals mostly involves an established tech giant providing access and funds for the propagation of a new AI firm.
- Anthropic has a valuation of $ 5 billion and is one of the most important competitors to OpenAI. So, OpenAI has the backing of Microsoft, and Bard has the backing of Google. The new deal from Amazon means Anthropic has the backing of the tech giant.
What is FTX Stance in this New Amazon Deal?
- As said, FTX is behind this AI startup, and the new deal from Amazon could change the dynamics of the crypto exchange. So, according to a theory from crypto reporter Colin Wu, FTX might come back to life with this new deal. How?
- This AI startup and failed crypto exchange FTX have very strong ties between the two. So, before the collapse of the crypto exchange, they were one of the major backbone of the AI startup. In 2022, they made a massive investment of around $500 million into the AI startup. So, the theory is that FTX can sell these shares for more than $500 million.
Conclusion
Amazon wants to become very active in the AI sector. So, they are doing this by making massive investments in some AI startups. One of them is Anthropic, which is worth more than $5 billion in its recent valuation. So, this tech giant made a massive investment of $1.2 billion into the AI startup.
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