Amazon engineers are already distilling Anthropic models into smaller, cheaper versions for internal use. Starting next year, Amazon will pay by tokens processed rather than compute hours, which could push costs up sharply. The company is also exploring alternatives like OpenAI.

As Anthropic grows to become a leading AI model used by enterprises, it’s been flexing its power with customers—including one of its most important early backers, Amazon. Earlier…

Amazon is evaluating alternative AI models after shifting Anthropic's Claude to token-based billing on AWS, as costs soar and export controls complicate the