Amazon adds AI

Article Excerpt

AMAZON.COM INC., $128.13, is a buy. The company (Nasdaq symbol AMZN; TSINetwork Rating: Average) (www.amazon.com; Shares outstanding: 10.3 billion; Market cap: $1.3 trillion; No dividends paid) has just agreed to invest up to $4 billion in privately held artificial-intelligence company Anthropic; it will take a minority ownership position, committing an initial $1.25 billion. That amount that could grow to $4 billion over time. As part of the agreement, Anthropic will use Amazon Web Services’ in-house chips to build, train, and deploy its AI software. It will make AWS its primary cloud provider. All in all, Amazon’s investment in Anthropic will help it compete with Microsoft and Google in the generative AI market. That’s key for AWS, the biggest cloud provider with nearly a third of the market. In addition, Anthropic’s current success in this area is more advanced than Amazon’s. Amazon.com is a buy. buy…