Amazon is investing the additional $4-billion in Anthropic as part of an expanded alliance that includes working together on "Trainium" hardware to optimise machine learning, according to the companies.

Anthropic has raised an additional $4 billion from Amazon, and has agreed to train its flagship generative AI models primarily on Amazon Web Services

Anthropic’s latest funding round comes two months after OpenAI raised $6.6 billion in the largest startup investment on record. It also secured a $4 billion line of credit from a group of banks. OpenAI, which is now worth $157 billion, will invest the funds in AI research and compute infrastructure.