As the artificial intelligence (AI) arms race speeds up, it's becoming more common for large tech firms with sizable cash positions to make huge investments into various AI start-ups, hoping to take advantage of the next big innovation. Amazon (NASDAQ: AMZN) did exactly that with its $4 billion investment in Anthropic, the company behind AI assistant Claude.

The deal announced in late September secures Amazon Web Services (AWS) as Anthropic's primary cloud provider and will boost AWS sales should Anthropic become the dominant player in its industry. But does this massive investment make Amazon a buy now?

Anthropic specializes in generative AI, which can be deployed, for instance, for customer service, as an AI assistant, or for help with coding. Essentially, Anthropic has a tool kit that helps its clients develop AI models that suit their needs. Anthropic rolled out AI assistant Claude in March.

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Source Fool.com