Amazon to invest up to another $25 billion in Anthropic as part of AI infrastructure deal

Amazon is investing up to $25 billion more in Anthropic, an AI company known for its Claude AI models (large language models, or LLMs, which are AI systems trained on vast amounts of text to generate human-like responses), on top of an earlier $8 billion investment. As part of this deal, Anthropic will spend over $100 billion on Amazon's cloud services and custom AI chips over the next decade to expand its computing capacity (the processing power needed to train and run AI models). Anthropic made this agreement because its infrastructure has been strained by rapidly growing demand from enterprise customers and users of Claude.