Amazon Poised to Reap Billions From Anthropic IPO Via Convertible Notes, Cloud Deal

Amazon is set to be the single largest financial beneficiary of Anthropic's initial public offering, holding convertible notes valued at $97.9 billion as of June 30, according to the AI company's S-1 filing. The notes carry $6.2 billion in principal outstanding — Anthropic's entire debt load — but convert into shares worth far more after successive funding rounds lifted the company's private valuation to $965 billion. Anthropic recorded a $72.4 billion non-cash charge in the first half of 2026 tied to the notes' rising fair value. The notes could convert into as many as 1.84 billion shares, capped at 12% of Anthropic's partially diluted share count unless Amazon waives the limit. Amazon's total investment reaches roughly $18 billion, including $10 billion in nonvoting preferred stock purchased in the second quarter and $8 billion in notes from 2023 through 2025. Anthropic has also committed to spend at least $110 billion on AWS over the next 10 years. Venture firms including Menlo Ventures and Sequoia hold stakes worth billions but none owns 5%, the S-1 principal stockholders' threshold. Google, meanwhile, has secured at least $114 billion in cloud commitments through 2033.