Amazon is also experimenting with integrating brands into content rather than relying solely on traditional ad breaks. (REUTERS)AI Quick ReadAmazon Inc shares saw renewed buying interest on Tuesday, 21 April, rising 3% to the day's high of $255 after the company announced plans to invest up to $25 billion in Anthropic as part of an expanded agreement to build AI infrastructure.
This investment builds on the $8 billion it has already committed to the artificial intelligence startup in recent years, which could bring Amazon’s total potential investment to about $33 billion.
The Seattle-based company will invest $5 billion immediately, with an additional $20 billion to follow, subject to certain commercial milestones. In return, Anthropic plans to spend over $100 billion over the next decade on Amazon’s cloud infrastructure.
The deal underscores that this is not merely an investment, but a long-term strategic commitment that locks in demand for Amazon Web Services (AWS), reinforcing the cloud unit’s role as a key provider of computing infrastructure for training and deploying advanced AI models.
Amazon has guided for significantly higher capital expenditure this year, joining peers in ramping up investments in data centres and infrastructure to meet rising AI demand. The company plans to spend $200 billion on data centres, chips, and related equipment.
While Amazon continues to face challenges in generating traction for its own AI models, such as Nova, it remains a leader in providing critical infrastructure for the AI ecosystem, particularly through its cloud computing capabilities.
Under the new agreement, Anthropic expects to deploy around 1 gigawatt of capacity using Trainium2 and Trainium3 chips by year-end, with plans to scale up to 5 gigawatts over time.
Amazon has long partnered with Marvell Technology on its Trainium chips, supported by a five-year agreement covering multiple generations of custom chips, connectivity solutions, and other data centre components.
The AI startup is increasingly relying on Amazon to meet its growing demand for compute power, a positive development for suppliers within Amazon’s chip ecosystem.
Earlier this month, Anthropic launched its advanced AI model, Claude Mythos Preview, for a limited group of technology companies, including Google and Apple.
Amazon’s shares have staged a strong comeback in April, gaining 21% so far amid improving sentiment towards technology stocks. The rally has brought the stock closer to its record high of $258.60, reached in November 2025.
For the December quarter, Amazon reported revenue of $213.4 billion, up 14% year-on-year. Net income stood at $21.19 billion, or $1.95 per share, compared with $20 billion, or $1.86 per share, a year earlier.
(With inputs from Reuters)
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