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On Monday, Jim Cramer pushed back against growing concerns over the circular AI deals as Amazon.com, Inc. (NASDAQ:AMZN) and Anthropic unveiled a long-term partnership centered on cloud and artificial intelligence infrastructure.
Amazon-Anthropic Deal Locks In $100 Billion AI Spending
Amazon said Anthropic has committed to spending more than $100 billion on its cloud platform, Amazon Web Services, over the next decade to support the training and deployment of advanced AI models.
The agreement includes access to Amazon's upcoming Trainium3 chips, expected to come online later this year.
The tech giant is also deepening its financial ties with Anthropic, announcing an additional $5 billion investment, with up to $20 billion more tied to performance milestones.
This builds on the $8 billion Amazon had already invested in the company.
‘Circular AI Deals' Raise Questions Across Industry
The structure of the deal has sparked debate because it resembles what analysts describe as "circular" arrangements—where companies invest in each other while simultaneously acting as major customers.
Cramer dismissed those concerns, ...
Source: Benzinga