Amazon to invest up to another $25 billion in Anthropic as part of AI infrastructure deal
Amazon will add $5 billion now and up to $20 billion more as Anthropic commits to spend more than $100 billion on AWS over 10 years.
- On Monday, Amazon CEO Andy Jassy announced an agreement to invest up to $25 billion in Anthropic, adding to $8 billion previously invested, with $5 billion provided immediately and up to $20 billion tied to "certain commercial milestones."
- Anthropic cited "inevitable strain" on its infrastructure caused by surging demand for Claude; to address reliability, the company committed to spend more than $100 billion on Amazon Web Services technologies over the next 10 years focusing on AWS Trainium chips.
- The agreement secures up to 5 gigawatts of capacity for training Claude models; Anthropic will bring nearly 1 gigawatt of Trainium2 and Trainium3 capacity online by year-end, supporting the startup's $380 billion valuation.
- Anthropic CEO Dario Amodei stated the partnership aims to support more than 100,000 customers building on AWS, noting, "Our collaboration with Amazon will allow us to continue advancing AI research."
- Amazon's move follows a $50 billion commitment to rival OpenAI two months prior, while Anthropic continues utilizing Microsoft Azure under a $30 billion compute deal; both race to strengthen infrastructure ahead of potential IPOs.
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Anthropic is a leading competitor of the ChatGPT developer OpenAI. With Amazon, the AI company has found a strong partner behind the chatbot Claude. Both want to benefit from each other.
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Amazon Commits Billions More to Anthropic
Amazon is deepening its bet on Anthropic, committing another $5 billion to the AI startup in a deal that tightens their business ties across cloud computing and chips. The new investment, announced Monday, is part of a broader deal that could bring Amazon's total outlay to as much as $25...
With Claude, Anthropic wants to compete with the great rival OpenAI. Now fresh money comes from Amazon. Meanwhile, a new model of AI developer is supposed to be too powerful for the public.
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