Amazon Doubles Down on AI Startup Anthropic with $4 bln Investment

The logo of Amazon is seen on the door of an Amazon Books retail store in New York City, US, February 14, 2019. REUTERS/Brendan McDermid
The logo of Amazon is seen on the door of an Amazon Books retail store in New York City, US, February 14, 2019. REUTERS/Brendan McDermid
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Amazon Doubles Down on AI Startup Anthropic with $4 bln Investment

The logo of Amazon is seen on the door of an Amazon Books retail store in New York City, US, February 14, 2019. REUTERS/Brendan McDermid
The logo of Amazon is seen on the door of an Amazon Books retail store in New York City, US, February 14, 2019. REUTERS/Brendan McDermid

Artificial intelligence startup Anthropic said on Friday it has raised an additional $4 billion investment from longtime backer Amazon.com, bringing the e-commerce giant's total investment to $8 billion, underscoring Big Tech's growing genAI investments.

Amazon will maintain its position as a minority investor, the company said. Its AWS unit will also be Anthropic's official cloud provider.

Anthropic also said it is working with AWS' Annapurna Labs on the development of future generations of Amazon's Trainium chips and plans to train its foundational models on the hardware, Reuters reported.

Britain's competition regulator had said in September Amazon's partnership with Anthropic will not be referred for a deeper probe as it did not fall under its jurisdiction.

Anthropic, which was co-founded by former OpenAI executives and siblings Dario and Daniela Amodei, said last year it had also secured a $500 million investment from Alphabet, which promised to invest another $1.5 billion over time.



Nintendo Hikes Switch 2 Annual Unit Sales Target

While Nintendo is diversifying into hit movies and theme parks, consoles remain at the core of its business. GREG BAKER / AFP
While Nintendo is diversifying into hit movies and theme parks, consoles remain at the core of its business. GREG BAKER / AFP
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Nintendo Hikes Switch 2 Annual Unit Sales Target

While Nintendo is diversifying into hit movies and theme parks, consoles remain at the core of its business. GREG BAKER / AFP
While Nintendo is diversifying into hit movies and theme parks, consoles remain at the core of its business. GREG BAKER / AFP

Nintendo said Tuesday it aims to sell 19 million Switch 2 consoles within this financial year, up from its previous target 15 million for the smash-hit gadget.

The Switch 2 became the world's fastest-selling games console after launching in June to a frenzy of excitement from fans of "Super Mario" and other top titles, said AFP.

"The hardware has seen strong sales since its launch," Nintendo said as it raised its annual net profit forecast to 350 billion yen ($2.3 billion) from 300 billion yen.

Sales of the games "Mario Kart World" and "Donkey Kong Bananza" are growing steadily, the Japanese company said.

"We will aim to keep the momentum of released titles and continuously introduce new titles to expand the platform's user base," it added.

While Nintendo is diversifying into hit movies and theme parks, consoles remain at the core of its business.

The original Switch soared in popularity during the pandemic with games such as "Animal Crossing" striking a chord during long lockdowns worldwide.

The Switch 1 has sold 154 million units since its 2017 release, making it the third best-selling console of all time after Sony's PlayStation 2 and the Nintendo DS.

Nintendo said Tuesday it sold more than 10 million Switch 2 consoles in the first half of 2025-26.

For the April to September period the company logged net profit of nearly 200 billion yen, up 83 percent year-on-year, forecasting record annual sales of 2.25 trillion yen.

"The Switch 2's demand will likely remain high, especially as the console ramps up sales in non-traditional markets such as China," said Darang Candra, director for East Asia and Southeast Asia research at Niko Partners.

"We remain cautious, however, about whether Switch 2 can replicate Switch 1's 150-million-unit sales," he told AFP ahead of Tuesday's earnings release.

"Switch 2's long-term success will depend on Nintendo's ability to sustain engagement with new titles and also penetrate emerging markets" such as in the Middle East and Asian countries apart from Japan, Candra added.

Nintendo in September marked 40 years since the first "Super Mario Bros." game -- a colorful world of platforms, pipes and scowling enemies -- was released.

Market analysts at Jefferies noted that Nintendo's brand was about to receive a "significant boost" when the red-capped Mario character features as a balloon in the Macy's Thanksgiving Parade in New York City this year for the first time.

The sequel to the megahit "Super Mario Bros. Movie" is also scheduled for release in April 2026.


OpenAI, Amazon Strike $38 billion Agreement for ChatGPT Maker to Use AWS

The ChatGPT app icon on a smartphone in this illustration taken October 27, 2025. REUTERS/Dado Ruvic/Illustration
The ChatGPT app icon on a smartphone in this illustration taken October 27, 2025. REUTERS/Dado Ruvic/Illustration
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OpenAI, Amazon Strike $38 billion Agreement for ChatGPT Maker to Use AWS

The ChatGPT app icon on a smartphone in this illustration taken October 27, 2025. REUTERS/Dado Ruvic/Illustration
The ChatGPT app icon on a smartphone in this illustration taken October 27, 2025. REUTERS/Dado Ruvic/Illustration

Amazon.com will supply OpenAI with cloud computing services under a multi-year $38 billion deal, giving the ChatGPT maker access to hundreds of thousands of Nvidia graphics processors to train and run its artificial intelligence models.

The agreement announced on Monday underscores the AI industry's surging appetite for computing power, driven by the pursuit of technology capable of matching or surpassing human intelligence. It sent Amazon shares up 5% in premarket trading.

OpenAI will begin using Amazon Web Services immediately, with all planned capacity set to come online by the end of 2026 and room to expand further in 2027 and beyond, Reuters reported.

The deal is among the first major moves by OpenAI since it completed a restructuring last week that frees the ChatGPT maker to move away from its nonprofit roots. Reuters has reported it was laying the groundwork for an initial public offering that could value the company at up to $1 trillion.

But surging valuations of AI companies and their massive spending commitments, which total more than $1 trillion for OpenAI, have raised fears that the AI boom is inflating into a bubble.


Microsoft Signs $9.7 Billion Contract with IREN for Nvidia Chips

A Microsoft logo is seen on an office building in New York City in this July 28, 2015 file photo. REUTERS/Mike Segar//File Photo
A Microsoft logo is seen on an office building in New York City in this July 28, 2015 file photo. REUTERS/Mike Segar//File Photo
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Microsoft Signs $9.7 Billion Contract with IREN for Nvidia Chips

A Microsoft logo is seen on an office building in New York City in this July 28, 2015 file photo. REUTERS/Mike Segar//File Photo
A Microsoft logo is seen on an office building in New York City in this July 28, 2015 file photo. REUTERS/Mike Segar//File Photo

Data center owner and operator IREN said on Monday it has signed a nearly $9.7 billion cloud services contract with Microsoft to provide the tech giant with access to Nvidia's GB300 processors over a five-year period.

The move is the latest attempt by Microsoft to boost AI and data center infrastructure at a time when AI demand is outstripping cloud capacity at Big Tech companies.

Shares of IREN surged about 18% in premarket trading after the announcement, with the company also entering into an agreement with Dell Technologies to purchase the chips and ancillary equipment for about $5.8 billion.

IREN expects the GB300 processors to be deployed in phases through 2026 at its 750-megawatt campus in Childress, Texas and said its contract with Microsoft includes a 20% prepayment.