Amazon has made a significant move by investing an additional $5 billion in Anthropic, the company behind the Claude AI models, bringing its total investment to $13 billion. This funding will allow Anthropic to acquire up to 5 gigawatts of AI chips from Amazon, which are essential for training and running its AI models. The investment comes at a crucial time for Anthropic, which has seen a surge in paid subscriptions for its Claude-related services, leading to performance issues and outages for users. In an announcement, Anthropic acknowledged that the rapid growth has strained its existing infrastructure, impacting reliability for users during peak times. The new deal is expected to provide “meaningful compute” resources within the next three months, with nearly 1 gigawatt of capacity anticipated before the end of 2026. Furthermore, there is potential for Amazon to invest an additional $20 billion in the future, contingent on achieving certain commercial milestones.