Anthropic commits $110 billion to Amazon Web Services

Anthropic has committed to spend at least $110 billion on Amazon Web Services over seven to ten years, according to Reuters, which cited the AI developer's IPO filing. The deal locks in long-term use of AWS and creates one of the cloud unit's largest forward revenue commitments, the report said.

Verizon has signed a separate AI infrastructure deal with AWS worth more than $2 billion, in which Verizon will supply high-capacity fiber connections for Amazon's data centers. The agreement became public one day before the Anthropic commitment was disclosed.

Amazon CEO Andy Jassy said on Friday, as reported by Reuters, that AWS cloud capacity is mostly sold out through the end of 2027, with substantial customer commitments running into 2028. He attributed the supply constraint to AI infrastructure demand, which he said exceeds what the company can supply.

UBS lifted its Amazon price target from $318 to $348 and maintained a Buy rating ahead of Amazon's October 29 quarterly results. On October 19, Morgan Stanley had increased its own target to $350 from $335 and named Amazon one of its preferred stocks. Both firms now hold targets above their previous marks.

Amazon said on October 20 that it plans to invest more than €16 billion in Germany in 2027, with €4.8 billion of that total allocated to expanding the AWS Europe region in Frankfurt to support cloud and AI infrastructure. The company described the figures as announced investment plans, not completed outlays.

The same day, Amazon announced more than 300,000 US holiday-season positions across seasonal, part-time and full-time jobs in Amazon's core operations. Reuters reported that the move is Amazon's first expansion of seasonal hiring in three years. From January 1, 2027, eligible seasonal workers will be covered by health benefits on their first day of employment.

Amazon has scheduled its third-quarter 2026 results and conference call for Thursday.