Amazon is expanding its push into AI with a new deal to invest up to $25 billion in Anthropic, adding to the around $8 billion it has already invested in the company since 2023. The agreement is tied to a much larger plan where Anthropic will spend over $100 billion on Amazon Web Services (AWS) over the next 10 years. As part of the partnership, Anthropic will rely on Amazonâs cloud and custom AI chips to train and run its models. The timing of this development becomes notable as the Dario Amodei-led firm is reportedly preparing for a potential IPO as early as October 2026, with ambitions to raise over $60 billion.
The structure of the deal shows a deepening alignment between the two companies rather than a simple investment. Amazonâs fresh $5 billion investment is expected to be deployed immediately, with the remaining $20 billion depending on business targets being met and the growth of Anthropicâs AI workloads. This approach allows the e-commerce giant to gradually expand its stake while ensuring that the partnership grows along with the real usage of its cloud services.
The deal is largely shaped by the huge demand for computing power required to build next-generation AI systems. Anthropic is expected to gain access to infrastructure capable of delivering up to 5 gigawatts of compute capacity over time. A significant portion of this capacity – almost 1 gigawatt – is anticipated to come online in the near term, allowing faster training cycles and more powerful model deployments. This expansion is critical as AI models grow in size and complexity, requiring vast clusters of high-performance hardware.
A key component of this infrastructure push is Amazonâs in-house chip technology. Anthropic will make extensive use of AWSâs Trainium family of AI accelerators, including the current Trainium2 chips and future generations like Trainium3. These chips are designed to reduce reliance on third-party hardware and lower the cost of training large language models.
Under this collaboration, while Anthropic secures critical large-scale computing power to support the rapid growth of its Claude AI models amid rising demand, Amazon strengthens its position in the AI race, with Amazon Web Services expected to generate over $100 billion in long-term cloud revenue from the partnership.
The latest investment becomes even more significant as recent reports suggest that multiple venture firms have approached Anthropic with offers that could value it at as much as $800 billion. Notably, in February 2026, the company secured a $30 billion Series G round that valued it at around $380 billion.
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Ashutosh is a Senior Writer at The Tech Portal, largely reporting on new tech, and intersection of technology and business. Ashutosh’s career spans across nearly a decade of technology writing across multiple platforms and languages.
