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Microsoft and Nvidia Invest Heavily in AI Rival to OpenAI

by Rachel Kim – Technology Editor

Microsoft ‍and Nvidia Back Anthropic with Up to $15 Billion‌ Investment

SAN FRANCISCO – november 19, ‍2024 ⁤ – microsoft​ and Nvidia are jointly investing up to $15 billion in Anthropic, a leading artificial intelligence safety and research company, in ⁤a move designed to diversify ⁣the AI landscape and lessen reliance‍ on‍ OpenAI. The investment⁢ will provide Anthropic with crucial resources‌ to accelerate the growth of ⁣its next-generation ​AI models and expand its computing infrastructure.

This ample ‍funding round underscores a strategic shift within the‍ tech industry as major players seek to broaden⁢ the base of AI innovation.‌ Currently, OpenAI dominates the generative AI market ​with its ⁣ChatGPT system. The partnership aims to foster competition and reduce the concentration⁤ of‍ power within the ​rapidly evolving AI sector,benefiting developers,businesses,and ‍consumers alike.

According to⁣ Reuters, DA Davidson analyst Gil Luria⁤ stated that⁤ the collaboration⁣ is a deliberate effort by Microsoft to avoid‌ over-dependence on a single AI pioneer. “Microsoft has chosen not to rely ‍on just one pioneering company,” Luria said. ⁢”Nvidia has also⁢ been somewhat dependent on the success of OpenAI and is now helping to create broader ‌demand.”

The investment will be ‍structured through a combination of financial commitments from both companies over‌ the coming years. Nvidia is contributing up to $5 billion,while Microsoft is pledging up to $10 billion. Anthropic will leverage Nvidia’s cutting-edge⁤ GPUs and Microsoft’s Azure cloud platform to build and deploy its ‍AI models.

Anthropic gained prominence in 2022 with the public release of its ⁣AI systems, quickly capturing public attention ​and fueling the surge of interest in artificial intelligence. The company is focused on⁣ developing “constitutional AI,” a technique designed to align AI systems with human values ⁢and ensure their safe and responsible deployment. This latest investment will enable Anthropic to⁤ further⁣ refine its ‍safety protocols⁢ and expand the ‌capabilities of its AI offerings.

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