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Welcome to AI Tool Report!

Thursday’s top story: Stepping up its competition with OpenAI, Amazon has invested a further $2.75B in OpenAI rival Anthropic, taking its total investment to $4B, marking the biggest outside investment in its history.

🌤️ This Morning on AI Tool Report

  1. 🥊 Amazon fights OpenAI with $4B Anthropic funding

  2. 💵 Is OpenAI finally about to pay GPT builders?

  3. 🧳 Google is taking over travel agents

  4. 🤖 Databricks launch GPT-4 rival

Read Time: 5 minutes

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INVESTMENT

🥊 Amazon fights OpenAI with $4B Anthropic funding 

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Our Report: Following its $1.25B investment in September, Amazon has invested a further $2.75B in Anthropic (co-founded by ex-OpenAI engineers), which has just released Claude 3, reportedly more powerful than OpenAI’s GPT-4, outperforming both on industry benchmark tests.

🔑 Key Points:

  • This brings Amazon’s Anthropic investment to $4B (their biggest-ever outside investment), and although they’ll maintain a minority stake, they won’t have a seat on the board.

  • Under the deal, Anthropic will use AWS as its primary cloud provider and Amazon’s chips for “mission-critical work" including safety research and future models.

  • Anthropic has closed five funding deals over the past year (including $500M from Google, with a commitment to increase to $2B) taking its total funding amount to $7.3B.

🤨 Why you should care: Amazon's $4B investment in Anthropic will no doubt raise alarm bells with US antitrust regulators following investigations into big tech investments in start-ups (like Microsoft’s $10B investment in OpenAI) to ensure fair competition.

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💵 Is OpenAI finally about to pay GPT builders?

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  • After promising to pay GPT builders by Q1, OpenAI has announced the ‘usage-based GPT earnings program’ that will allow (US) GPT developers to earn money, based on usage.

  • A small group of developers are testing the usage-based compensation model and OpenAI will “work with the developer community” to establish the best approach.

  • Although it’s promising news, OpenAI hasn’t disclosed which developers are testing it, what the terms of the revenue model are, or the timeline for its rollout.

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TRAVEL

🧳 Google is taking over travel agents 

  • Google has announced a feature for SGE (its testing platform for AI search features) which creates holiday itineraries from queries like, “Plan a two-day trip to Paris around history.”

  • It pulls data from sites, photos, and user reviews from over 200M places, and it will also include links to sources of travel information to prevent content plagiarism issues.

  • It’s available in the US, along with a new Google Maps feature that, when searching a city, will show a "curated list of recommendations" from travel sites and users.

LARGE LANGUAGE MODELS

🤖 Databricks launch GPT-4 rival

  • Data and AI company—Databricks—has released DBRX, an open-source Large Language Model (LLM) that outperforms GPT 3.5 and other open-source models, like Claude 3.

  • DBRX took 2 months to train and $10B to build, and also (reportedly) came “shockingly close” to beating GPT-4 in the industry’s standard benchmarking tests.

  • DBRX can be downloaded (for free) from GitHub or Hugging Face and can be used for commercial purposes, allowing enterprises to train it with their own data without constraint.

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