Amazon invests $5B in Anthropic as startup secures up to 5GW of Trainium chips

Amazon said it will invest $5 billion in AI startup Anthropic and may commit up to an additional $20 billion over time. The deal reportedly includes Anthropic securing up to 5 GW of Amazon Trainium chips, strengthening Anthropic’s compute capacity and tying its infrastructure closely to AWS. The announcement sent Amazon shares about 3% higher in early post-market trading, reflecting investor optimism about AWS’s strategic role in the generative-AI race and potential long-term revenue from cloud compute and AI services. The move intensifies competition in AI cloud offerings and could influence demand for AI hardware and related software services across the industry.