E-commerce giant Amazon (AMZN) has agreed to invest another $25 billion U.S. in artificial intelligence (A.I.) startup company Anthropic.
The new investment comes after Amazon previously allocated $8 billion U.S. to Anthropic as part of an agreement between the companies to build out A.I. infrastructure.
As part of the new $25 billion U.S. investment, Anthropic said it will spend more than $100 billion U.S. on Amazon Web Services (AWS) technologies over the next 10 years.
Specifically, Anthropic said it will use Amazon’s custom Trainium A.I. microchips to train and deploy current and future versions of its A.I. models.
The latest investment from Amazon includes $5 billion U.S. to Anthropic now, with up to $20 billion U.S. in future payments tied to “certain commercial milestones.”
Anthropic said it will bring nearly one gigawatt total of Amazon’s Trainium2 and Trainium3 microchips online by the end of this year.
Amazon’s $25 billion investment in Anthropic is part of the $200 billion U.S. in capital expenditures the company is spending this year on A.I. infrastructure.
Anthropic was founded in 2021 by a group of researchers who defected from OpenAI. The company is best known for its Claude A.I. chatbot.
Anthropic has also inked recent deals with other technology giants such as Microsoft (MSFT) and Alphabet (GOOGL).
Last November, Microsoft agreed to invest up to $5 billion U.S. in Anthropic, and Anthropic said it would purchase $30 billion U.S. of Azure cloud computing capacity.
Anthropic is widely expected to hold its initial public offering (IPO) later this year.
AMZN stock has gained 48% over the past 12 months to trade at $248.28 U.S. per share.
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