Amazon bets $25 billion on Anthropic as part of $100 billion cloud deal

In a major push to cement its position in the artificial intelligence (AI) race, Amazon said on Tuesday it will invest up to $25 billion in AI startup Anthropic, as part of a sweeping cloud agreement worth more than $100 billion over the next decade.

The deal will see Anthropic commit to spending heavily on Amazon Web Services (AWS) to build and run its AI models, giving Amazon a crucial long-term customer even as competition intensifies among cloud and AI giants.

Amazon said it will invest $5 billion immediately, with an additional $20 billion tied to performance milestones. This adds to the $8 billion it has already invested in the startup.

Cloud at the centre of the AI race

At the heart of the partnership is infrastructure. Anthropic, the maker of the Claude AI models, will rely on AWS for large-scale computing power, including Amazon's custom-built Trainium chips and Graviton processors.

The startup plans to secure up to 5 gigawatts of compute capacity -- underlining the massive energy and infrastructure demands of next-generation AI systems.

For Amazon, the deal reinforces its strategy of focusing on the backbone of the AI boom: cloud computing and chips, rather than just competing on end-user AI models.

Amazon's high-stakes AI strategy

While rivals like OpenAI and Google have captured consumer attention with headline-grabbing AI tools, Amazon has leaned into its strength as a cloud provider.

The company is ramping up capital expenditure -- expected to touch around $200 billion this year -- largely to expand AI infrastructure. It is also backing multiple AI players, including a separate multi-billion-dollar commitment to OpenAI earlier this year.

CEO Andy Jassy said Anthropic's deepening use of Trainium chips reflects growing confidence in Amazon's in-house silicon, which is designed to lower the cost of training and running AI models.

Scaling up fast

For Anthropic, the agreement secures critical capacity at a time of rapid growth. The company said demand for its AI services has surged sharply in 2026, straining existing infrastructure.

CEO Dario Amodei said the expanded partnership will help the company scale its models while maintaining performance and reliability for users.

The deal also includes plans to expand AI services across Asia and Europe, reflecting rising global demand.