Anthropic has secured a term sheet for a $10 billion funding round at a $350 billion valuation, led by Coatue and Singapore’s GIC. Amazon, which began investing in Anthropic in 2022, has already committed several billion dollars to the AI developer. This continued backing positions Amazon to benefit from Anthropic’s advances in large language models—Claude Sonnet 4.5, Claude Haiku 4.5 and Claude Opus 4.5—and helps Amazon diversify its AI partnerships against competitors like Google and OpenAI.

In Q3 2025, AWS generated $33 billion in revenue, up 20% year-over-year, and delivered a robust 34.6% operating margin, accounting for two-thirds of Amazon’s operating profits. Meanwhile, Amazon’s advertising segment posted $17.7 billion in revenue, a 24% increase, making it the company’s fourth-largest revenue source. Together, these high-margin businesses are pivotal to Amazon’s profitability, offsetting the low-margin retail division and underpinning earnings growth in 2026.

Amazon’s investment in AI infrastructure and data centers has driven trailing-12-month capital expenditures from $53.97 billion in Q2 2024 to $115.90 billion in Q3 2025. Over the same period, free cash flow fell from $52.97 billion to $14.78 billion. While heavy capex dampens near-term cash generation, it funds Amazon’s custom Trainium 3 AI chips—promising up to 40% cost savings versus competitors—and underpins long-term cost leadership in cloud and fulfillment automation.