CNBC’s Deirdre Bosa joins 'Money Movers' to discuss Amazon weighing another multi-billion dollar investment in Anthropic.

Seattle

Amazon is reportedly considering making another multi-billion dollar investment in the artificial intelligence startup Anthropic. The company has already invested $8 billion in Anthropic, but unlike Microsoft's exclusive partnership with OpenAI, Amazon holds less leverage, as Anthropic remains partly owned by Google and collaborates with other major tech firms.

This potential investment underscores a broader strategic divide among leading technology companies in their approach to AI: some, like Meta and Google, focus on building proprietary models in-house, while Amazon is hedging by partnering with established players. While Amazon is integrating Anthropic’s technology into its products and infrastructure, there is no guarantee of exclusivity, and Anthropic continues to keep its options open with multiple partners.

Amazon weighs another multi-billion dollar investment in Anthropic

Welcome back. Amazon is reportedly considering deepening its ties with the A.I. startup Anthropic through a new multibillion dollar investment. A move that could hint at Amazon's broader approach to developing its A.I. Deirdre Bosa has that in today's tech check. Katie. Hey good morning Leslie. So Amazon it's already eight billion deep into Anthropic right. But unlike Microsoft's deal with open A.I. Amazon has little leverage. Anthropic it's still 14 percent owned by Google. It's collaborating with Metta and others and it has made clear that it wants to stay independent. So with more investment Amazon's A.I. bet yes it gets bigger but not necessarily tighter. The bigger picture here reveals a key strategic divide in how big tech is approaching A.I. build versus rent. Now compare Amazon's approach to that of Metta's Zuckerberg is burning cash to build models in-house and lock down top A.I. talent. The payoff is control and I.P. This is a more difficult path no doubt. But if it works it'll give Metta the entire stack. Amazon to be fair it is building its own models but by most accounts they have not been competitive. They consistently rank well below GPT for Claude Gemini and others on third party benchmarks. With Anthropic the company is hedging its scaling a proven player while its in-house team essentially plays catch up. It's building custom chips for Anthropic designing data centers around their needs even embedding Claude into products like Alexa. But again no guarantee that Claude that Anthropic stays loyal. It can still date around. Now the risk to investors is that Amazon is scaling a partner that it cannot lock down at least in the Microsoft open A.I. partnership. Microsoft secured exclusivity and got chat GPT growth to flow back into Azure. Even that though has turned messy with open A.I. diversifying pushing to commercialize on its own. So for big tech guys this is really kind of like a real time A.B. test. But for the A.I. era so far the market has been rewarding narratives. We've seen that with Microsoft. It got credit for partnering early with open A.I. still getting credit. Meanwhile Google it has gone all in on building the entire stack but it hasn't gotten the same kind of love from investors. It is still early though. And certainly what I hear in tech in Silicon Valley is that the value may ultimately belong to the companies that own the foundation. And this is a longer term play by the ones that are developing their own in-house models versus an Amazon that is hedging. D is that is the benefit. They're purely just capital gains or is there something more that they're able to generate by being an investor even if it's a minority stake or putting a bit more into these companies that they wouldn't be able to get if an anthropic were just a normal regular way vendor for them. The capital gains question that's a really good one. Right. Because we've seen these darlings like Anthropic and Open A.I. just accrue value in private markets. There's so much money for them to be raised. But I think the real bet for Amazon because that's really minor compared to Amazon's entire balance sheet and its list of assets. The real bet is to get the best foundational model right. And there's this race right now to develop a G.I. or superintelligence. The definition of that is incredibly vague and subjective. But that's what everyone's racing for. That's what Mark Zuckerberg is racing for because that is sort of the Holy Grail and seen as the ultimate prize. If you can get there first then you will have not only the best narrative but the best technology. And the idea is that customers consumers enterprise etc. developers they're going to come to you. And that's really what I think Amazon is doing with its Anthropic investment. It's trying to sort of partner with the best model out there. And Claude arguably of course is one of the best models out there. But again for Anthropic they have choices. They have options. They can partner with many different companies and they're also receiving money from different companies like an Amazon competitor Google. Yeah. But to your point it's it's kind of nice to see I guess that investors are at least being somewhat discerning as it pertains to rewarding these investments in which where they're putting the money and trying to make sure that it's done in a smart way. Deirdre thank you.

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