Amazon has agreed to invest up to $25 billion in AI startup Anthropic, adding to its earlier $8 billion commitment as part of an expanded partnership focused on AI infrastructure.

Anthropic, the maker of Claude AI models, has also pledged to spend more than $100 billion on Amazon Web Servicesover the next decade, largely using Amazon’s custom AI chips.

The deal will significantly expand computing capacity, including nearly 1 gigawatt of new infrastructure by the end of the year, to meet rapidly growing demand.

Amazon said the investment is tied to commercial milestones and reflects the intense competition among major tech firms to scale AI systems, CNBC has reported.

The agreement comes amid broader industry efforts by companies like Microsoft and Google to secure large-scale computing power for AI development.