Artificial intelligence (AI) startup Anthropic says its artificial intelligence chatbot Claude will remain free of advertising for the time being.
Claim 50% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
In a blog post, Anthropic says that Claude users will not see advertisements or sponsored content near their conversations, and that the chatbot’s answers will not be influenced by third-party product placements.
The decision by Anthropic to remain ad-free comes weeks after rival startup OpenAI announced plans to begin testing advertisements within its ChatGPT chatbot. However, Anthropic says that ads on its Claude chatbot would be “inappropriate.”
Anthropic’s Business Model
Anthropic was founded in 2021 by several former OpenAI employees, including CEO Dario Amodei. The company is known for its AI models called Claude, and its AI coding tool that has exploded in popularity among developers.
“Our business model is straightforward: we generate revenue through enterprise contracts and paid subscriptions, and we reinvest that revenue into improving Claude for our users,” Anthropic said in its latest blog post.
Anthropic is expected to hold its initial public offering (IPO) later this year in what is anticipated to be one of the biggest market debuts ever. Amazon (AMZN) is one of Anthropic’s biggest backers, having invested $8 billion into the AI startup company.
Is AMZN Stock a Buy?
AMZN stock has a consensus Strong Buy rating among 37 Wall Street analysts. That rating is based on 36 Buy and one Hold recommendations issued in the last three months. The average AMZN price target of $298.53 implies 27.20% upside from current levels.
