Amazon Deepens Anthropic Ties with USD 25 Billion Investment, USD 100 Billion Cloud Commitment
- tech360.tv
- Apr 21
- 2 min read
Amazon announced it will invest up to USD 25 billion in Anthropic, with the artificial intelligence startup committing to spending more than USD 100 billion on Amazon's cloud technologies over the next 10 years. This deal strengthens the relationship between the two organisations, as Anthropic seeks to secure capacity for bolstering its models.
Seattle-based Amazon will initially invest USD 5 billion in Anthropic, with an additional USD 20 billion to follow, contingent on specific commercial milestones. This new investment supplements the USD 8 billion Amazon previously invested in the company.
Amazon has faced challenges in generating interest for its proprietary artificial intelligence models, including Nova. However, the company remains a leader in supplying crucial infrastructure for the artificial intelligence boom, such as cloud computing power.
Amazon anticipates spending approximately USD 200 billion on capital expenditures this year, primarily allocated to artificial intelligence development. Amazon is also investing significantly in major artificial intelligence startups.
The latest investment in Anthropic, creator of the Claude artificial intelligence model, follows Amazon's announcement earlier this year to invest up to USD 50 million in OpenAI, maker of ChatGPT.
In a statement, Anthropic stated its expectation to achieve approximately 1 gigawatt of capacity using Trainium2 and Trainium3 chips by year-end. Anthropic ultimately aims to secure up to 5 gigawatts of this capacity.
Amazon Chief Executive Officer Andy Jassy stated that Anthropic's adoption of Trainium chips "reflects the progress we've made together on custom silicon."
Anthropic is working to advance in the artificial intelligence race with model releases centred on coding and design. Meanwhile, Amazon is actively seeking customers for its custom silicon chips, which are designed for artificial intelligence training and inference.
Amazon's shares increased by approximately 2.7% in extended trading.
Amazon will invest up to USD 25 billion in artificial intelligence startup Anthropic.
Anthropic has committed to spending over USD 100 billion on Amazon's cloud technologies in the next decade.
The investment includes an initial USD 5 billion, with USD 20 billion contingent on commercial milestones, adding to a previous USD 8 billion investment.
Source: REUTERS
