Amazon (AMZN) has made an initial investment of $1.25 billion, according to Reuters, in the generative AI startup, Anthropic. Amazon is committed to potentially investing up to $4 billion in Anthropic, securing a minority ownership stake in the startup. Anthropic is recognized for its 'Claude' AI system, which provides assistance to users by answering their questions, similar to ChatGPT. Anthropic will leverage Amazon's resources in its development efforts, including Amazon Web Services and the company's custom chips. This investment trend aligns with the broader movement of tech giants, such as Microsoft (MSFT), Google (GOOG, GOOGL), and Meta (META), increasingly investing in artificial intelligence. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Over the past week, rumors have been circulating on the internet that may have caused some artificial-intelligence (AI) winners like Nvidia (NASDAQ: NVDA) to sell off. Last week, the Taiwan Business Times cited "rumors in the market" that Microsoft (NASDAQ: MSFT) CoPilot subscriptions were not as strong as originally forecast, and that ChatGPT usage was down over the summer.
The artificial intelligence (AI) industry, a key driver of stock market trends this year, has seen a significant surge in investment, particularly in large language models and other AI processes. However, recent developments suggest the role of AI in guiding stock market trends might be overstated.