Stock Markets June 29, 2026 02:00 PM

Amazon shifts Anthropic billing to token-based model, rebuts report that costs will rise

Change to pricing structure for Anthropic models set to take effect next year, Amazon says collaboration continues and cost increases are incorrect

By Ajmal Hussain
Share
Twitter Reddit Facebook LinkedIn
AMZN

Amazon has altered a portion of its commercial arrangement with Anthropic, moving from an hours-based billing approach to a token-based pricing model beginning next year, according to a report. The report suggested the change could raise Amazon's costs for using Anthropic's large language models, including Claude. Amazon disputed that characterization and reiterated that the companies remain technically aligned and are deepening their collaboration.

Amazon shifts Anthropic billing to token-based model, rebuts report that costs will rise
AMZN
Summarize with
ChatGPT Perplexity Claude Grok Gemini

Key Points

  • Amazon is transitioning part of its Anthropic arrangement from compute-hour billing to a token-based pricing model starting next year - impacts cloud services and AI application costs.
  • A report said the new model could raise Amazon's expenses for Anthropic's large language models such as Claude, but Amazon called that claim incorrect and reiterated ongoing collaboration.
  • The partnership includes substantial financial commitments - a $4 billion initial investment in 2023, an agreement this year to potentially add up to $25 billion, and a separate, large-scale arrangement between Amazon and OpenAI involving up to $50 billion.

Amazon has modified parts of its partnership with AI startup Anthropic, replacing an hours-based billing arrangement with a token-pricing model that is scheduled to start next year, according to a report by The Information. The report cited people familiar with the matter and indicated the shift could lead to higher expenses for Amazon when accessing Anthropic's large language models, including Claude.

An Amazon spokesperson pushed back on that interpretation, emphasizing the ongoing nature of the relationship with Anthropic. "Amazon and Anthropic share a multifaceted partnership grounded in technical collaboration, and we continue to foster that relationship and deepen our work together," the spokesperson said, adding that it was "incorrect that changes from our expanded collaboration will increase our costs."

The deal between the two companies is operational as well as financial. Amazon deploys Anthropic's models to power several of its AI-driven services - among them the Alexa shopping assistant, the Kiro coding tool and Quick, a workplace assistant.

The firms have maintained a formal partnership since 2023, when Amazon invested $4 billion in Anthropic. That investment came with terms that made Amazon Web Services (AWS) the startup's primary cloud provider and tied Anthropic's training and inference work to Amazon's custom AI chips. Earlier this year, Amazon agreed to commit up to an additional $25 billion in funding for Anthropic.

Amazon has also broadened its AI relationships through a separate agreement with OpenAI. Under that arrangement, Amazon will invest up to $50 billion, while OpenAI will run on AWS infrastructure, make its models available through Amazon Bedrock and provide Amazon access to its AI models for integration across the company's products and services.


Context and implications

The reported move from compute-hour billing to a token-based pricing scheme represents an operational shift in how usage of large language models is quantified and invoiced. The companies' public statements stress a continued technical collaboration, while the report highlighted concerns about the potential for higher costs. Amazon's rebuttal leaves the disagreement over cost impacts unresolved in public statements.

What remains clear from available information

  • The pricing model change is set to take effect next year.
  • Amazon continues to use Anthropic models across multiple internal and customer-facing products.
  • Both companies have longstanding and expanding financial commitments to one another, including past and potential future investments.

Risks

  • Uncertainty over actual cost impact - the report suggests costs could rise under token pricing, while Amazon disputes that; this uncertainty affects budgeting for cloud and AI services.
  • Potential contractual or operational changes linked to pricing terms - shifts in how models are billed may require adjustments to how Amazon measures and allocates cloud and AI resources.
  • Market reaction and partner dynamics - differences in public statements create ambiguity about future commercial terms and their effect on AI product deployment and pricing strategies.

More from Stock Markets

Options Activity in NioCorp Jumps to Over 16,000 Contracts, Calls Dominate Volume Jun 29, 2026 Polestar's U.S. Halt Raises Questions Over Long-Term Service and Resale Support Jun 29, 2026 Options Activity in Gap Surges as Shares Slide Over 7% Jun 29, 2026 JPMorgan Finds Limited Demand for $775 Million Sable Offshore Loan Despite High Coupon Jun 29, 2026 Bernstein Flags Select Winners in Life Science Tools Amid Signs of Recovery Jun 29, 2026