Anthropic, a major competitor to OpenAI, has secured a fresh $4 billion investment from Amazon. The deal cements Amazon Web Services (AWS) as Anthropic’s primary platform for training its cutting-edge generative AI models.

Anthropic is also partnering with Annapurna Labs, Amazon’s chip design division, to develop future versions of AWS’s custom AI training chips, Trainium. In a statement, Anthropic highlighted the collaboration as pivotal to optimizing computational efficiency and advancing AI research. Amazon, in turn, emphasized its commitment to pushing generative AI’s boundaries, stating that the partnership ensures groundbreaking innovation.

The investment boosts Amazon’s total funding in Anthropic to $8 billion, although the tech giant retains a minority stake. To date, Anthropic has raised $13.7 billion in venture capital, navigating increasing financial pressures to scale its AI ambitions.

Anthropic’s flagship AI model, Claude, has seen massive growth via AWS’s Bedrock platform, gaining tens of thousands of customers. The partnership now includes providing Claude to U.S. intelligence agencies and upgrading Amazon’s Alexa with Anthropic’s AI technology. However, this growing collaboration has drawn scrutiny from regulators like the FTC and the U.K.’s Competition and Markets Authority.

Despite these challenges, Anthropic continues to innovate, rolling out new features like Claude 3.5 Sonnet’s autonomous PC tasking capabilities and enterprise-focused AI solutions. Its leadership, including co-founder and ex-OpenAI executive Dario Amodei, remains committed to prioritizing safety in AI development.