Amazon Invests Up to $25 Billion in Anthropic as AI Competition Intensifies

Quick Facts

• Amazon will invest up to $25 billion in Anthropic, including $5 billion immediately and $20 billion tied to commercial milestones
• Anthropic commits to spending over $100 billion on AWS over the next decade, securing access to 5 gigawatts of computing capacity
• The deal values Anthropic at $350 billion, with the company reporting $30 billion in annualized revenue

Amazon announced Monday it will invest up to $25 billion in AI startup Anthropic, expanding a partnership that includes more than $100 billion in cloud commitments over the next decade.

The investment includes $5 billion immediately, with up to $20 billion more tied to commercial milestones. The deal values Anthropic at $350 billion, not including the new funding.

Anthropic has committed to spending over $100 billion on Amazon Web Services over 10 years. The agreement gives the AI company access to up to 5 gigawatts of computing capacity on Amazon’s custom Trainium chips.

“Anthropic’s commitment to run its large language models on AWS Trainium for the next decade reflects the progress we’ve made together on custom silicon,” said Amazon CEO Andy Jassy.

The partnership comes two months after Amazon invested $50 billion in OpenAI, Anthropic’s primary competitor. Anthropic CEO Dario Amodei said enterprise and consumer demand for Claude has created “inevitable strain” on infrastructure that has affected reliability and performance.

Anthropic reports $30 billion in annualized revenue, surpassing OpenAI’s $25 billion. The company crossed $19 billion in annualized revenue by March 2026, up from $9 billion at year-end 2025 and $1 billion in December 2024.

The AI startup serves over 300,000 business customers, with eight of the Fortune 10 now using Claude. Companies spending more than $100,000 annually grew seven times in the past year.

Amazon shares rose 2.7% in extended trading following the announcement. The company expects to spend roughly $200 billion this year on capital expenditures, mostly for AI infrastructure.

Nearly 1 gigawatt of Trainium2 and Trainium3 capacity will come online by year-end. Anthropic currently uses more than 1 million Trainium2 chips to train and serve Claude models.

Both companies are preparing for potential IPOs that could happen this year as they compete to demonstrate market leadership in enterprise AI.

Read more: Amazon to invest up to $25B in Anthropic as part of expanded cloud partnership