Amazon.com Inc (NASDAQ:AMZN) shares are trading higher in Monday’s after-hours session after the company announced an expanded strategic collaboration with Anthropic.

Amazon Expands Collaboration With Anthropic

Amazon announced Anthropic is committed to spending more than $100 billion on Amazon Web Services technology over the next 10 years to secure five gigawatts (GW) of capacity to train and power the company’s advanced AI models. The deal includes Trainium3 capacity, which is expected to come online this year.

Separately, Amazon bolstered its investment in Anthropic with $5 billion invested and up to an additional $20 billion tied to commercial milestones. The investment adds to the $8 billion Amazon previously invested in Anthropic in 2024.

"Our custom AI silicon offers high performance at significantly lower cost for customers, which is why it's in such hot demand,” said Andy Jassy, CEO of Amazon.

“Anthropic’s commitment to run its large language models on AWS Trainium for the next decade reflects the progress we’ve made together on custom silicon, as we continue delivering the technology and infrastructure our customers need to build with generative AI."

The commitment includes Trainium2, Trainium3, Trainium4 and the ability to purchase future generations of Trainium as they become available. Additionally, AWS customers will be able to access the full Anthropic-native Claude console from within AWS.

AMZN Shares Climb After The Close

AMZN Price Action: Amazon shares were up 2.55% in after-hours, trading at $254.60 at the time of publication on Monday, per Benzinga Pro.

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