Amazon Bets $4 Billion on AI Startup Anthropic to Boost Flagging AWS Growth

Amazon invested $4 billion in AI startup Anthropic to boost AWS and tap into generative AI.

The deal makes AWS Anthropic's primary cloud provider. Anthropic specializes in generative AI models.

Investment aims to spur growth for AWS, which has slowed recently compared to rivals Google Cloud and Microsoft Azure.

AWS growth is critical for Amazon as it makes up majority of profits. Margins improving as Amazon shifts to tech company.

Amazon stock trades at low valuation despite margin gains. Opportunity for huge upside if AWS rebounds and margins improve further.