Amazon will invest up to $25 billion in AI startup Anthropic. The expanded partnership begins with an immediate $5 billion investment. This move deepens a relationship established in 2023 to rival AI investments by other cloud competitors.
Anthropic committed to spending over $100 billion on Amazon Web Services (AWS) over the next decade. AWS will serve as the primary cloud provider for the AI firm. Anthropic will utilize AWS Trainium and Graviton chips to train and deploy future Claude AI models.
Amazon shares rose in Tuesday premarket trading following the Monday evening announcement. Analysts view the deal as pivotal for AWS, Amazon’s most profitable division. The agreement solidifies Amazon as essential infrastructure for the generative AI boom. This growth narrative remains a significant factor for investors in the consumer discretionary sector.