Can Amazon's $4 Billion Artificial Intelligence (AI) Investment Reaccelerate Its Cloud Business?
Amazon's (NASDAQ: AMZN) had a bit of a change of heart when it comes to making equity investments in hot start-ups.
Microsoft (NASDAQ: MSFT) invested $10 billion in OpenAI last year and partnered with the company to boost its cloud business. (NASDAQ: GOOG) (NASDAQ: GOOGL) built on its artificial intelligence (AI) capabilities to launch its own large language model earlier this year. Amazon, meanwhile, has fallen behind in generative AI.
So, the cloud computing leader invested in Anthropic, one of OpenAI's biggest rivals. In exchange for its commitment of up to $4 billion, Amazon is now the preferred cloud partner for Anthropic. Amazon Web Services (AWS) hasn't had to make these deals in the past, but with the rapid growth in AI over the last 12 months, it needs a mutually beneficial partnership like this one.
Source Fool.com
Alphabet Inc. A Stock
The stock is an absolute favorite of our community with 94 Buy predictions and no Sell predictions.
As a result the target price of 179 € shows a positive potential of 20.36% compared to the current price of 148.72 € for Alphabet Inc. A.
