Anthropic: The $25 billion engine hidden inside Amazon’s cloud

try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry U.S., Israel strike Iran — what is known so far Strategists see only temporary market impact from Iran strikes Bitcoin prices fall below $64,000 after U.S./Israel attack on Iran Berkshire’s operating profit slides nearly 30% on insurance underwriting (South Africa Philippines Nigeria) Anthropic: The $25 billion engine hidden inside Amazon’s cloud By Simon Mugo Author Simon Mugo Company News Published 03/01/2026, 02:57 AM Updated 03/01/2026, 03:02 AM Anthropic: The $25 billion engine hidden inside Amazon’s cloud 0 AMZN 1.00% Amazon is no longer just a retail giant; it is becoming an AI powerhouse fast. Investors have been mostly focused on Amazon’s massive warehouse network, but Wolfe Research argues that a much larger story is unfolding within AWS. In a recent note, analysts maintained an Outperform rating on the stock with a $250 price target. They believe the street is missing the sheer scale of the Anthropic partnership. Wolfe projects that Anthropic’s contribution to AWS revenue will explode from roughly $3.9 billion in 2025 to a staggering $25.02 billion by 2027. This isn’t just a simple hosting agreement. Instead, it is a multi-layered monetization strategy that includes cloud computing and the heavy use of proprietary Trainium chips. Unlock premium chipmaker and AI insights with InvestingPro The two firms also have a lucrative revenue-sharing model through the Bedrock platform. Bedrock itself is already seeing momentum, reportedly reaching a "multi-billion dollar" annual run-rate at the end of 2025. Beyond the $2 trillion market cap But how does this translate to the bottom line? Wolfe estimates that AWS will hit 30% year-over-year revenue growth in both 2026 and 2027, comfortably outpacing the 25% growth currently expected by the rest of the Street. The optimistic outlook is fueled by the integration of one million Trainium chips, which should add significant "points of growth" to the cloud segment ov...