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Amazon's Anthropic stake is leading to a huge windfall

Amazon's Anthropic stake is leading to a huge windfall

Amazon said it received a major boost from its previous $13 billion worth of investment in Anthropic.

Then-AWS CEO  Adam Selipsky gestures toward Dario Amodei
Then-Amazon Web Services CEO Adam Selipsky gestures toward Anthropic CEO Dario Amodei during a conference.
  • Amazon's stake in Anthropic is paying off big time.
  • Amazon said most of its other non-operating pre-tax income was due to its Anthropic holdings.
  • Amazon has previously invested $13 billion in Anthropic.

Amazon's stake in Anthropic is proving to be a massive boon to the world's largest online retailer.

In its latest quarterly earnings report, Amazon reported non-operating pre-tax other income of $53.4 billion, "primarily from our investment in Anthropic."

According to previous financial filings, Amazon has invested $13 billion in Anthropic with the potential for up to $20 billion more.

In June, Anthropic announced that it confidentially filed for an initial public offering, taking the first step toward a highly anticipated IPO. In late May, Anthropic said that it had completed a Series H funding round that valued the company at $965 billion.

Amazon isn't the only Big Tech name sharing in Anthropic's success.

On Wednesday, Microsoft reported its investment in Anthropic had netted a $3.2 billion gain. Microsoft previously invested $5 billion in Anthropic.

Anthropic has seen its valuation skyrocket as the popularity of its Claude family of models pushes the overall generative AI race.

Read the original article on Business Insider