Amazon announced a significant investment of up to $25 billion in AI firm Anthropic. This move comes as Anthropic commits to spending over $100 billion on Amazon's cloud services during the next decade.
The deal strengthens the partnership between the tech giants. Amazon will initially invest $5 billion, with an additional $20 billion contingent on achieving specific commercial targets. This investment builds on Amazon's prior $8 billion stake in Anthropic.
Seattle-based Amazon, a leader in cloud infrastructure for AI, is expanding its AI initiatives. The company expects capital expenditures of approximately $200 billion this year, primarily for AI development. This investment in Anthropic, creator of the AI model Claude, follows a previous commitment of up to $50 billion to OpenAI.
Anthropic plans to utilize Amazon's Trainium chips to secure substantial AI computing capacity. Amazon CEO Andy Jassy highlighted the collaboration on custom silicon, emphasizing progress in AI development.
Amazon shares saw an approximate 2.7% increase in after-hours trading following the announcement.