Anthropic to Invest $11.6 Billion in Akamai in Seven-Year Cloud Deal
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Anthropic announced a monumental agreement with Akamai, committing to invest $11.6 billion in its cloud infrastructure over the next seven years. This deal, which far exceeds the $1.8 billion from a previous agreement between both companies, reflects a significant shift in Anthropic's approach to artificial intelligence infrastructure. The $11.6 billion commitment is not entirely rigid. According to Akamai's securities filing, the agreement is subject to certain conditions related to service delivery and availability. Both companies have the option to terminate the agreement under certain circumstances. This contract marks the largest agreement in Akamai's history and continues Anthropic's trend of increasing its computing capacity. Despite the magnitude of the agreement, Akamai does not expect to generate revenue from this deal until 2027, anticipating between $150 million and $300 million in revenue, and an annual run rate of approximately $1.7 billion by the end of 2028. Akamai plans to spend around $5.5 billion to expand its capacity, in addition to adding $1.7 billion to its capital expenditure to acquire components like memory in advance. As part of the agreement, Akamai granted Anthropic a call option, allowing it to acquire non-voting convertible preferred shares into 7.7 million common shares, representing up to 5% of the company's outstanding shares, at a price of...
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