Amazon invests another $5B in Anthropic as part of $100B cloud commitment: report -- TFN

Amazon has put another $5 billion into Anthropic, bringing its total investment since 2023 to $13 billion, according to TechCrunch. The deal could add up to $20 billion more if certain business goals are met, bringing Amazon's total investment to $25 billion.

Amazon made the investment at a $350 billion valuation, which is lower than Anthropic's $380 billion valuation from February. After the news, Amazon's stock price went up by about 3%.

Dario Amodei and Daniela Amodei started Anthropic in 2021. Based in San Francisco, the company has become one of the most valuable private AI labs in the world. Earlier investments from Google, Spark Capital, and others valued Anthropic at up to $380 billion, and some venture capitalists are now considering values above $800 billion.

Anthropic develops the Claude series of large language models, which are used for chat, coding, and business AI. With the new agreement, Anthropic will use only AWS Trainium, Amazon's custom AI chips, to run its models for the next ten years.

The deal gives Anthropic up to 5 gigawatts of computing power for training and running its models. A large amount of Trainium2 capacity will be available in the second quarter of 2026, and nearly 1 gigawatt of combined Trainium2 and Trainium3 should be ready by the end of the year. The agreement also expands Claude's infrastructure for running models in Asia and Europe.

Anthropic is a direct competitor to OpenAI, which recently made a similar deal with Microsoft, and to Google DeepMind, which is both a rival and an investor through Google Cloud. In February 2026, OpenAI and Anthropic together raised more than $150 billion, making it the biggest period of private investment in tech history.

The Amazon deal is similar to Google's growing partnership with Anthropic and shows that big cloud companies see exclusive relationships with AI labs as key to their strategies.

The partnership positions Anthropic for a potential IPO at a valuation that could exceed $800 billion, according to reports of VC interest. Anthropic will bring nearly 1 GW of Trainium capacity online by the end of 2026 and expand international inference coverage to support Claude's growing user base outside the US.

An additional $20 billion in Amazon investment is available, contingent on meeting commercial milestones, linking Anthropic's growth to AWS performance.