Amazon Poised to Invest Another $25B in Anthropic

Photo Credit: Abid Shah

Amazon is preparing to invest up to $25 billion in Anthropic, in addition to the $8 billion it has already injected into the AI startup in recent years.

On Monday, artificial intelligence startup Anthropic announced its commitment to spending over $100 billion on Amazon Web Services technology over the next decade as part of an expanded agreement to build out the tech giant's AI infrastructure. Amazon has agreed to invest up to $25 billion in the AI company, on top of the $8 billion it has already injected into Anthopic over the last few years.

According to Anthropic, the build-out includes current and future generations of Trainium, Amazon's custom AI chips. The AI company also said it has secured up to 5 gigawatts of capacity for training and deploying its Claude AI models.

Amazon's investment into Anthropic includes $5 billion now and up to $20 billion in the future, contingent on "certain commercial milestones." The initial investment arrives at Anthropic's latest valuation of $380 billion.

"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, as we continue delivering the technology and infrastructure our customers need to built with generative AI," said Amazon CEO Andy Jassy.

Anthropic said it will bring nearly 1 gigawatt of Trainium2 and Trainium3 capacity chips online by the end of the year. To that end, Amazon said back in February that it expects to dish out around $200 billion this year alone on capital expenditures that mostly consist of AI infrastructure.

Meanwhile, Anthropic's copyright court battle brought by music publishers headed by Universal Music Group is ramping up as the AI company has asked a California federal court to rule in its favor, arguing fair use. Anthropic claimed that its AI training made "transformative" use of lyrics to "help Claude understand human language and enable progress and productivity in science, business, and education."

Last month, the publishers told the court that Anthropic's AI training did not constitute fair use because Claude generates derivatives of copyrighted lyrics that "compete with and dilute the market" for the rights holders.

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