The world's leading e-commerce company, Amazon (NASDAQ: AMZN), announced that it was investing up to $4 billion in a young artificial intelligence company called Anthropic. This news comes just eight months after fellow tech giant announced that it was investing an additional $10 billion in OpenAI, the parent company of the generative AI platform ChatGPT.

But with some of the buzz around AI fading, investors are likely asking themselves whether this $4 billion investment is worthwhile. Let's take a look.

Before diving into the terms of the deal and any potential impact it could have on Amazon's business, it's probably best to take a look at what Anthropic really does.

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Source Fool.com