The AI firm Anthropic and the digital behemoth Amazon have formed a strategic alliance, and Amazon has agreed to invest almost $4 billion in the company. With this move, Amazon joins Google, Microsoft, and Nvidia in the competition for AI supremacy.

Anthropic, an AI company run by Dario and Daniela Amodei and started by a group of former OpenAI employees, has created an AI helper dubbed Claude. Anthropic offers Claude as a better alternative to Google’s Bard and OpenAI’s ChatGPT, which are both supported by Microsoft.

Amazon intends to develop its products and services by using Anthropic’s AI model in a calculated move. In exchange, Amazon Web Services will be the main source of cloud services for Anthropic. Anthropic will also be in charge of creating unique AI chips for Amazon.

As per the arrangement, Amazon will own a small portion of Anthropic. According to early reports, Amazon has made investments totaling about $1.25 billion.

Earlier this year, Microsoft made a huge investment of $10 billion in OpenAI, acquiring a 49% share in the company. As a result, several Microsoft products such as Bing search, Office, and Windows have integrated OpenAI’s language models.

Google recently announced collaborative agreements, including becoming Anthropics’ preferred cloud provider, and also invested $300 million in Anthropics the previous year. Google was one of the notable sponsors who contributed money to Anthropics’ $5 billion valuation fund-raise in May of this year.

Anthropics’ co-executive Amodei told the Financial Times that their agreement with Google remains the same when asked about Amazon’s position as the company’s principal cloud provider, but she did not go into greater detail.