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 engineers are already distilling Anthropic models into smaller, cheaper versions for internal use. Starting next year, Amazon will pay by tokens processed rather than…

Amazon is exploring OpenAI as an alternative to Claude after a renegotiated contract with Anthropic will raise costs through token-based pricing.

Amazon is reportedly considering greater use of OpenAI models and its own Nova family after Anthropic raised the cost of using its models in Amazon products.