Amazon’s AI infrastructure push with Anthropic lifts outlook, but profitability debate grows

Amazon’s deal with Anthropic — committing more than $100 billion of AWS spending over the next decade and up to 5 gigawatts of compute — has boosted analysts’ confidence in AWS’s custom silicon (Trainium) and long-term revenue visibility. Jefferies highlighted the scale of demand and noted Amazon will invest up to $25 billion more in Anthropic on top of an $8 billion stake. However, the megadeals (including a prior OpenAI pact) raise concerns about capital intensity, potentially consuming a large share of the roughly 15 gigawatts of data-center capacity Amazon plans through 2027 and keeping capital expenditures elevated (projected around $200 billion for 2026). The market reaction is constructive for strategic positioning but raises questions about near-term margins and returns, creating mixed investor sentiment.