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On Monday, Jim Cramer pushed back against growing concerns over the circular AI deals as Amazon.com, Inc. and Anthropic unveiled a long-term partnership centered on cloud and artificial intelligence infrastructure.<\/p>\n
Amazon said Anthropic has committed to spending more than $100 billion on its cloud platform, Amazon Web Services, over the next decade to support the training and deployment of advanced AI models.<\/p>\n
The agreement includes access to Amazon’s upcoming Trainium3 chips, expected to come online later this year.<\/p>\n
The tech giant is also deepening its financial ties with Anthropic, announcing an additional $5 billion investment, with up to $20 billion more tied to performance milestones.<\/p>\n
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This builds on the $8 billion Amazon had already invested in the company.<\/p>\n
The structure of the deal has sparked debate because it resembles what analysts describe as “circular” arrangements\u2014where companies invest in each other while simultaneously acting as major customers.<\/p>\n
Cramer dismissed those concerns, writing, “This is not a circular deal,” adding, “Isn’t it possible that everyone wins?”<\/p>\n
Isn’t it possible that everyone wins? I ran a dotcom company saying no to circular deals. This is not a circular deal https:\/\/t.co\/mrIpV45qLC<\/a><\/p>\n \u2014 Jim Cramer (@jimcramer) April 20, 2026<\/a><\/p>\n Trending:\u00a0Avoid the #1 Investing Mistake: How Your \u2018Safe’ Holdings Could Be Costing You Big Time<\/a><\/p>\n Amazon and Anthropic did not immediately respond to Benzinga’s request for comments.<\/p>\n Still, similar arrangements across the AI sector have drawn scrutiny. For instance, last year, OpenAI struck major agreements with chipmakers<\/a> like Nvidia Corp and Advanced Micro Devices, Inc., blending investment with large-scale purchasing commitments.<\/p>\n Critics warn that such deals can resemble “round-tripping,” a practice where companies exchange funds or purchases in ways that may inflate revenue without reflecting true economic demand.<\/p>\n Industry observers note that the AI boom is forcing a small group of companies to rely heavily on one another for both capital and computing power, creating tightly interlinked financial relationships.<\/p>\n Supporters, however, argue that the demand is real. Building and scaling AI systems requires massive infrastructure and partnerships like Amazon and Anthropic’s, which may simply reflect the enormous costs of staying competitive in the race.<\/p>\n