Amazon invests up to $25 billion in Anthropic to expand partnership By Investing.com

Investing.com -- Amazon on Monday said that it will invest $5 billion in AI company Anthropic immediately, with up to an additional $20 billion tied to commercial milestones. The investment expands the companies' existing partnership following Amazon's previous $8 billion investment in Anthropic.

Under the expanded agreement, Anthropic has committed to spend more than $100 billion over the next ten years on Amazon Web Services technologies. Anthropic will secure up to 5 gigawatts of capacity using Amazon's Trainium chips to train and power its Claude AI models.

The partnership includes access to Trainium2, Trainium3, Trainium4, and future chip generations. Anthropic will also utilize tens of millions of Amazon's Graviton CPU cores. The collaboration encompasses Trainium3 capacity expected to come online this year and expanded international inference capabilities in Asia and Europe, the company's statement said.

Earlier this month, Jassy in a company shareholder letter had said that Amazon's custom chip business is growing rapidly, as large tech firms are starting to make their own chips to reduce dependence on chipmakers like Nvidia. The letter said that the business has doubled its annualized revenue run rate to over $20 billion, up from the $10 billion the company disclosed alongside its fourth-quarter results.

Jassy had also hinted towards future chip sales to other firms by saying that "There's so much demand for our chips that it's quite possible we'll sell racks of them to third parties in the future".

AWS customers will gain access to Anthropic's Claude Platform directly through their existing AWS accounts, eliminating the need for additional credentials or billing relationships. The platform will integrate with existing AWS access controls and monitoring systems.

The companies have previously collaborated on Project Rainier, one of the world's largest AI compute clusters with nearly half a million Trainium2 chips. More than 100,000 customers currently run Anthropic's Claude models on AWS through Amazon Bedrock.

"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 Andy Jassy, Amazon's CEO.

Dario Amodei, Anthropic's CEO, stated that the collaboration will allow the company "to continue advancing AI research while delivering Claude to our customers, including the more than 100,000 building on AWS."