Amazon (NASDAQ:AMZN) stock is up on Monday as the e-commerce giant gears up for the artificial intelligence (AI) race with a massive investment of up to $4 billion.
Amazon is investing this money in Anthropic, a rival to ChatGPT creator OpenAI. This secures Amazon a minority stake in the company and opens up its AI technology for use in Amazon’s own applications.
For example, Amazon is hoping to speed up the development of Anthropic’s AI tech to help advance Amazon Web Services (AWS). That will also see AWS become the primary cloud provider of Anthropic.
Andy Jassy, CEO of Amazon, said the following about this investment:
“We have tremendous respect for Anthropic’s team and foundation models, and believe we can help improve many customer experiences, short and long-term, through our deeper collaboration.”
What This Means for AMZN Stock
With this move, Amazon is making sure it doesn’t fall behind rivals in the AI race. Both Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) and Microsoft (NASDAQ:MSFT) have made significant pushes in the space.
AMZN stock is up 1.1% as of Monday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
