Amazon has agreed to invest up to $25 billion in Anthropic, adding to the $8 billion it has already invested in the artificial intelligence firm in recent years. The expanded deal focuses on strengthening AI infrastructure.
In Monday’s announcement, Anthropic revealed plans to spend over $100 billion on Amazon Web Services over the next decade. This includes using current and future generations of Trainium, Amazon’s custom-built AI chips. The company also secured up to 5 gigawatts of capacity to support the training and deployment of its Claude AI models.
Andy Jassy said Anthropic’s decision to run its large language models on Amazon Web Services Trainium chips for the next decade highlights the progress both companies have made in custom silicon, as Amazon continues to provide the tools and infrastructure needed for generative AI development.
Amazon’s investment includes an immediate $5 billion in Anthropic, with the potential to reach $25 billion depending on specific commercial milestones, according to the announcement. The initial funding is based on Anthropic’s latest $380 billion valuation.
Anthropic also revealed plans to bring nearly 1 gigawatt of Trainium2 and Trainium3 capacity online before the end of the year.
Amid intensifying competition among major hyperscalers to expand AI capabilities, Amazon noted earlier this year that it expects to spend around $200 billion on capital expenditures, largely focused on building out AI infrastructure.
Amazon’s latest investment comes just two months after the company agreed to commit up to $50 billion to OpenAI, a key rival to Anthropic. Both AI firms are actively competing to strengthen their market positions ahead of potential IPOs that could arrive as early as this year. In recent months, OpenAI executives have criticized Anthropic, calling it a “strategic misstep” for not securing sufficient computing capacity.
Anthropic said on Monday that rising enterprise and developer demand for its Claude models—alongside a sharp increase in consumer usage—has placed significant pressure on its infrastructure, affecting reliability and performance. The company noted that its expanded partnership with Amazon will help rapidly scale its available capacity.
“Our users say Claude is becoming essential to their workflows, and we need to build infrastructure that keeps up with this accelerating demand,” said Dario Amodei. “Working with Amazon allows us to continue advancing AI research while delivering Claude to customers, including more than 100,000 building on AWS.”
Founded in 2021 by former OpenAI researchers and executives, Anthropic has gained recognition for its Claude family of AI models and its early traction with enterprise clients. The company’s annualized revenue has surpassed $30 billion.
Anthropic named Amazon Web Services as its primary cloud provider in 2023 and its main training partner in 2024. At the same time, it has expanded partnerships with other major players, including Microsoft and Google.
In November, Microsoft agreed to invest up to $5 billion in Anthropic, alongside a commitment from Anthropic to purchase $30 billion worth of Azure compute capacity. More recently, the company also deepened its collaboration with Google and Broadcom to secure multiple gigawatts of additional capacity.
Source: CNBC Edited by Bernie
