These companies have solid prospects in AI and make attractive long-term investments, but one is a more reliable buy.
There's little question that 2023 will likely go down in history as the year artificial intelligence (AI) came of age. While the technology has been around for decades, recent developments in the field have ignited an AI arms race, with each of the biggest tech companies scrambling to get a piece of the action. Microsoft (NASDAQ: MSFT) was among the first to recognize the vast potential of generative AI, quickly teaming up with ChatGPT creator OpenAI.
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 Microsoft announced that it was investing an additional $10 billion in OpenAI, the parent company of the generative AI platform ChatGPT. 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.