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Anthropic to pay Akamai $11.6 billion over seven years in cloud deal

Anthropic has committed to paying Akamai $11.6 billion over seven years for cloud services, significantly increasing a previous deal's size. This marks Akamai's largest contract and focuses on CPU infrastructure, predicted to boost revenue towards $1.7 billion by 2028. The agreement includes a warrant for potential stock acquisition linked to Anthropic's future spending.

Key points

  • Anthropic will pay Akamai $11.6 billion over seven years for cloud infrastructure.
  • This deal is more than six times larger than the previous $1.8 billion contract reported in May.
  • The deal is contingent on Akamai meeting service requirements.
  • Anthropic's commitment represents a significant push into CPU-based AI infrastructure amid rising demand.
  • Akamai anticipates $150-$300 million revenue from the deal in 2027, with annual revenue reaching $1.7 billion by 2028.
  • Akamai will spend around $5.5 billion to expand capacity for this contract.
  • As part of the deal, Akamai issued a warrant allowing Anthropic to buy shares at a pre-set price based on spending milestones.
  • This is Akamai's first deal involving warrants tied to cloud services and indicates a shift in traditional AI supplier-customer dynamics.
  • Akamai's stock rose by 17% following the announcement.

Why it matters

  • This deal highlights the growing importance of cloud services in AI development, reminiscent of trends seen in cloud investments by major companies like Google and Microsoft.
  • The investment strategy reflects a shift where suppliers are offering stakes to customers to foster long-term partnerships.
  • Similar arrangements were previously seen with AMD and OpenAI, showcasing how major tech players are leveraging financial incentives in AI relationships.

The $11.6 billion deal between Anthropic and Akamai signifies a pivotal investment in AI infrastructure, demonstrating evolving supplier-customer relationships and setting a precedent for future cloud agreements in the tech industry.