Amazon’s AI infrastructure push with Anthropic lifts outlook, but profitability debate grows

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Amazon’s partnership with Anthropic, involving a commitment of over $100 billion for Amazon Web Services and a further $25 billion investment in Anthropic, signals a significant expansion of Amazon’s AI ambitions. This deal, along with a similar arrangement with OpenAI, highlights growing confidence in Amazon’s custom silicon strategy, particularly its Trainium processors, and strengthens AWS’s long-term revenue visibility. However, the substantial capital expenditure required for these deals is raising questions about profitability and returns for investors.

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