Among the tech giants positioning themselves for an edge in the race to develop more AI capabilities, online behemoth Amazon has agreed to invest up to $4 billion in artificial-intelligence startup Anthropic, according to a company news release and a report from the Wall Street Journal.

Anthropic will use Amazon’s custom chips to build and deploy its AI software as part of the deal. Amazon also has agreed to incorporate Anthropic’s technology into products across its business, the WSJ reported.

“Anthropic will use AWS Trainium and Inferentia chips to build, train, and deploy its future foundation models, benefitting from the price, performance, scale, and security of AWS,” Amazon said in a news release. “The two companies will also collaborate in the development of future Trainium and Inferentia technology.”

Amazon said AWS will become Anthropic’s “primary cloud provider for mission critical workloads,” including safety research and future foundation model development. Anthropic also plans to run the majority of its workloads on AWS, Amazon added.

“We have tremendous respect for Anthropic’s team and foundation models, and believe we can help improve many customer experiences, short and long-term, through our deeper collaboration,” said Andy Jassy, Amazon CEO. “Customers are quite excited about Amazon Bedrock, AWS’s new managed service that enables companies to use various foundation models to build generative AI applications on top of, as well as AWS Trainium, AWS’s AI training chip, and our collaboration with Anthropic should help customers get even more value from these two capabilities.”

People familiar with the deal told the WSJ that Amazon has committed to a $1.25 billion investment in Anthropic, which could grow to $4 billion over time.