Amazon and Anthropic finalized a deal worth over $100 billion in cloud computing spending.
Anthropic will use Amazon Web Services (AWS) for its computing needs over the next decade.
Amazon is investing an additional $5 billion in Anthropic to expand its existing equity stake.
The agreement highlights the capital expenditure required to develop and train advanced AI models.
Cloud providers like AWS benefit from this increased infrastructure spending.
The deal secures a long-term revenue stream for Amazon, a major holding in technology-focused ETFs.
JP Morgan raised its S&P 500 price target following the news, citing accelerating AI-driven earnings.