Amazon-Anthropic Deal Locks In $100 Billion AI Spending<\/p>\n
Amazon said Anthropic has committed to spending more than<\/a> $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 This builds on the $8 billion Amazon had already invested<\/a> in the company.<\/p>\n \u2018Circular AI Deals’ Raise Questions Across Industry<\/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 Amazon and Anthropic did not immediately respond to Benzinga’s request for comments.<\/p>\n Growth Engine Or Financial Red Flag?<\/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