Anthropic gets $5B investment from Amazon, will use it to buy Amazon chips

Amazon has significantly boosted its multibillion-dollar bet on Claude developer Anthropic by investing an additional $5 billion—enabling Anthropic to eventually secure up to 5 gigawatts’ worth of AI chips from Amazon to help train and run its popular Claude AI models. Amazon is already one of Anthropic’s largest investors, having previously invested $8 billion in the AI startup. The latest move brings Amazon’s immediate investment up to $13 billion, and the companies have agreed to the possibility of Amazon committing another $20 billion in the future if the partnership achieves certain commercial milestones, according to Wall Street Journal reporting. The large cash infusion and prospect of obtaining more computing resources come at a crucial time for Anthropic, given the massive surge in paid subscriptions for Claude-related services early this year. That demand spike and strain on the existing cloud compute…