EL7.AI
StocksMediumUpdated×9•Originally published 23 April 2026•Updated 25 April 2026•
1 min read

Amazon Secures $100B+ Cloud Deal with Anthropic Amid Rising Capex Concerns

Jeff Bezos against an orange background with the Amazon logo, a delivery truck, and stacks of Amazon boxes and coins.

Key Facts

1Amazon expanded its partnership with Anthropic, locking in more than $100 billion in spending on AWS services.
2The deal includes providing 5GW of compute capacity to support Anthropic's AI models.
3Capital expenditures reaching $200 billion are increasing pressure on Amazon's near-term cash flow.

Amazon has deepened its partnership with Anthropic through a landmark $100 billion cloud deal, as Google’s strategic investment aims to address the startup's compute shortages and strengthen Google Cloud's market position. These developments occur amid projections that Meta is expected to surpass Google in digital advertising revenue by 2026, intensifying the race for AI dominance. To challenge Nvidia, Google unveiled its new TPU 8t and TPU 8i chips, supporting its confirmed $40 billion investment in Anthropic at a $350 billion valuation. The funding seeks to meet surging demand for enterprise AI tools, with $30 billion contingent on performance milestones. With total commitments reaching $65 billion, Anthropic is increasingly positioned for a potential IPO. Meanwhile, Amazon's stock trades at a 2027 consensus P/E of 26x with a target price of $285, despite ongoing scrutiny over capital expenditures.