Akamai, Anthropic sign $11.6 billion cloud services deal

Akamai Technologies has signed a seven-year cloud services deal with Anthropic worth $11.6 billion. The agreement could expand by an additional $9 billion, bringing the potential total commitment to about $20 billion, according to the Economic Times Tech.

Akamai shares surged in extended trading, with reports varying between a 15% jump, a 17% jump, a 20% jump, and a 22% jump. As part of the deal, Akamai issued a warrant that could give Anthropic a stake of up to 5% in the cloud company. The warrant gives Anthropic the right to purchase Series B shares at $111.33 each, converting into about 7.7 million shares of Akamai's common stock.

Anthropic, which is IPO-bound, has been aggressively expanding its computing power and securing infrastructure needed to train and run increasingly powerful models. The company has also agreed to spend $45 billion to rent AI cloud computing power from Nscale's West Virginia data centre campus, Reuters reported.

Brief written by urgent.news from Economic Times Tech, Straits Times Business, The Business Times - Companies & Markets, SiliconANGLE, Techmeme — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.