TL;DR
Amazon is looking at OpenAI and other alternatives after a renegotiated contract will shift Anthropic billing to per-token pricing next year.
Amazon is looking for cheaper alternatives to Anthropic’s Claude models after a renegotiated contract will shift to token-based pricing that could substantially increase the company’s AI costs, according to The Information. The new pricing structure does not take effect until next year, but Amazon is already exploring options including OpenAI. The report highlights a deepening rift between two companies that were once inseparable partners in the AI race.
Amazon’s dependence on Claude runs deep. Its coding agent Kiro, workplace assistant Quick, and consumer-facing Alexa for Shopping all rely on Anthropic’s models, according to The Information. A shift to token-based billing would make that dependence far more expensive, particularly after Amazon recently scrapped an internal leaderboard that encouraged employees to burn through as many AI tokens as possible.
The search for cheaper models has sent Amazon toward OpenAI, a company it has already been growing closer to. Earlier this year Amazon committed $50 billion to OpenAI, giving the AI lab access to its cloud infrastructure in exchange for access to its models. That deal followed Amazon’s initial $4 billion investment in Anthropic, which has since grown to a potential $33 billion.
Anthropic, meanwhile, has been expanding its own relationships beyond Amazon. The company committed to spending $200 billion on Google Cloud and chips over five years, according to The Information, a deal that effectively makes Google a major infrastructure partner alongside AWS. Amazon’s latest $25 billion investment in Anthropic included a reciprocal commitment of more than $100 billion in AWS spending, but the Google arrangement signals Anthropic no longer depends on a single cloud provider.
The tension boiled over last month when the US government ordered Anthropic to shut down its Fable 5 and Mythos 5 models after a security report that originated from Amazon. Andy Jassy reportedly told government officials that Amazon researchers had used Fable 5 to obtain information useful for cyberattacks. The timing raised questions, coming as Amazon was preparing to launch its own cybersecurity-focused AI agent designed to spot vulnerabilities.
The contract dispute, the move toward OpenAI, and the Fable 5 incident together suggest the Amazon-Anthropic relationship has entered a new and more adversarial phase. Amazon remains one of Anthropic’s largest investors and cloud customers, but both companies now have reasons to reduce their dependence on each other. For the broader AI industry, the fracturing of its most prominent investor-model-provider partnership would redraw the competitive map.
