Amazon plans to invest up to $25 billion in Anthropic, adding to its previous $8 billion stake in the AI start-up. The tech giant will initially commit $5 billion, with potential to add another $20 billion if Anthropic hits certain milestones.

In return, Anthropic agreed to spend $100 billion on Amazon's cloud computing services over the next decade. The Claude chat creator has become one of the largest users of Amazon's Trainium chip, designed as an alternative to expensive Nvidia processors powering AI systems.

The deal reflects Amazon's aggressive push in the AI race, complementing its $50 billion investment in OpenAI. Amazon expects to spend $200 billion this year on capital expenditures for data centers and AI chips. Both companies aim to build leading AI technologies using Amazon's custom silicon.