Amazon invests another $5 billion in Anthropic as AI race intensifies

Amazon has announced an additional $5 billion investment in artificial intelligence (AI) startup Anthropic, deepening its partnership with the company behind the Claude AI models.

The latest funding builds on the $8 billion Amazon has already committed to Anthropic, with the tech giant signaling it could invest up to $20 billion more if the startup meets certain performance milestones.

As part of the collaboration, San Francisco-based Anthropic said it plans to spend more than $100 billion over the next decade on Amazon Web Services (AWS) infrastructure to power its growing AI operations.

“We need to build the infrastructure to keep pace with rapidly growing demand,” said Dario Amodei, adding that the partnership will support both research advancements and wider deployment of its Claude AI systems.

Anthropic has reported rapid growth, saying earlier this month that its annualised revenue has surged to over $30 billion, marking a significant milestone in the competitive AI sector.

The investment comes amid evolving relations between Anthropic and US policymakers. 

The company recently held discussions with officials at the White House on collaboration and governance frameworks for advanced AI technologies.

This marks a shift from earlier tensions, when Donald Trump directed federal agencies to halt use of Anthropic’s technology following disagreements over its deployment in surveillance and military systems. The company has since challenged certain government actions in court.

Anthropic also recently introduced a new AI model, Mythos, but chose not to release it publicly due to potential cybersecurity risks.

The latest investment underscores Amazon’s aggressive push into AI as competition intensifies among major tech firms to build and control next-generation AI infrastructure.