Amazon's partnership with Anthropic boosts data center expansion and Trainium chip ramp.

Amazon shares rose 3% as its partnership with AI startup Anthropic drives data center expansion and the upcoming launch of its in-house Trainium chip. The collaboration is helping to fuel Amazon's data center buildout and the ramp of its Trainium chip. The partnership is a significant development for Amazon as it continues to invest in AI and cloud infrastructure.

Amazon.com Inc. (AMZN) shares rose 3% on Friday following the announcement of its partnership with AI startup Anthropic. The collaboration, which includes a significant funding round for Anthropic, is driving data center expansion and the upcoming launch of Amazon's in-house Trainium chip. This strategic move is part of Amazon's ongoing investment in artificial intelligence (AI) and cloud infrastructure.

Anthropic, led by Dario Amodei, recently completed a $13 billion Series F fundraising round, which valued the company at $183 billion post-money. The new funding will likely accelerate spending on Amazon Web Services (AWS), Amazon's primary cloud provider, and boost Anthropic's AI competitiveness [1]. Amazon's investment in Anthropic, now at $8 billion, positions the e-commerce giant as a minority investor in the AI startup.

The funding round could contribute to a bump in Amazon's third-quarter earnings per share, as the investment allows Amazon to treat it as a securities investment. Additionally, Google, which owns between 12% and 14% of Anthropic, may also benefit from the deal [1].

Amazon's investment in Anthropic is part of its broader strategy to expand its data center network and meet the increasing global demand for AI computing and cloud services. In New Zealand, Amazon announced a significant $4.4 billion investment to expand its cloud computing infrastructure, supporting AI workloads and digital services. This investment is part of a larger $50 billion commitment to strengthen digital infrastructure across the Asia-Pacific region [2].

AWS's growth is being constrained by power-related capacity issues, which are impacting its ability to meet demand. However, the company has a record $195 billion backlog, indicating strong demand for its services. Amazon's investments in New Zealand and other regions aim to alleviate these capacity constraints and support the company's global expansion plans [2].

The partnership with Anthropic and the expansion of AWS's data center network are expected to drive innovation in AI and cloud computing. Local companies in New Zealand, such as Xero and Kiwibank, will benefit from the new AWS Region, which will provide advanced cloud services for their operations. AWS plans to hire and train local personnel to operate and support the new cloud region, contributing to the growth of New Zealand's tech talent pool [2].

In summary, Amazon's partnership with Anthropic is a significant development that is driving data center expansion and the launch of its in-house Trainium chip. This strategic move is part of Amazon's broader investment in AI and cloud infrastructure, which is expected to support the company's growth and meet the increasing global demand for these services.

References:
[1] https://www.morningstar.com/news/marketwatch/20250903243/why-anthropics-fresh-183-billion-valuation-is-good-news-for-amazon
[2] https://theoutpost.ai/news-story/amazon-s-4-4-billion-investment-in-new-zealand-boosts-ai-and-cloud-infrastructure-19759/