Amazon is dramatically expanding its stake in Anthropic. In return, the AI company has committed to spending more than $100 billion on AWS technologies over the next decade.
Amazon is investing up to $25 billion in Anthropic, bringing its total investment in the AI company to $33 billion. The deal is part of a sweeping infrastructure agreement that will tie the two companies together for years to come.
An initial $5 billion will flow immediately, with the remaining $20 billion "tied to certain commercial milestones." The first tranche is based on Anthropic's latest valuation of $380 billion.
In exchange, Anthropic has committed to spending more than $100 billion on AWS technologies over the next ten years. That includes Graviton processors and Trainium2 through Trainium4 chips, with the option to tap future generations of Amazon's custom AI silicon. All told, Anthropic is locking in up to 5 gigawatts of capacity to train and run its Claude models.
For Amazon, the deal is also a push for its own AI chips, which still trail Google's TPUs and Nvidia's GPUs depending on the workload, and Nvidia is now moving into inference chips too. If an AI breakthrough arrives, custom silicon will be a key weapon for defending cloud market share and margins against rivals.
