Amazon's strategic investments in artificial intelligence, particularly its partnership with AI startup Anthropic, have yielded substantial financial returns, contributing significantly to a $9.5 billion pre-tax gain and driving a surge in overall profitability this quarter. The tech giant's third-quarter results for 2025 showcase the success of its long-term AI strategy, with net income increasing to $21.2 billion, or $1.95 per diluted share, compared to $15.3 billion, or $1.43 per diluted share, in the third quarter of 2024.
Anthropic Investment as a Profit Driver
Amazon's strategic alliance with Anthropic, the AI company known for its Claude AI chatbot, has proven to be a key factor in its recent financial success. The company invested an initial $1.25 billion in September 2024, followed by an additional $2.75 billion investment bringing the total to $4 billion. Amazon has invested and committed a total of $8 billion in Anthropic. A portion of Amazon's investment in Anthropic converted from notes into stock in the first quarter, triggering an accounting adjustment that contributed to a $3.3 billion pre-tax gain for the company. In Q3 2025, the pre-tax gains of $9.5 billion from investments in Anthropic, PBC were included in non-operating income. This reflects the increased valuation of Anthropic since Amazon's initial investment. The partnership extends beyond financial investment, with Anthropic utilizing Amazon Web Services (AWS) as its primary cloud provider and leveraging Amazon's Trainium and Inferentia chips to build its AI models.
Broader AI Investments and Strategy
Amazon's commitment to AI extends far beyond its investment in Anthropic. The company has announced plans to ramp up capital expenditures to $100 billion in 2025, a significant increase from last year's $83 billion, as the company doubles down on artificial intelligence (AI) investments. Amazon's AI strategy is centered on artificial intelligence as a cornerstone of the company's innovation ecosystem, underpinning its mission to enhance customer experiences and optimize operational efficiency. CEO Andy Jassy has emphasized that AI will change every customer experience, driving the push for Amazon to invest in AI across the company. Amazon is reorganizing to leverage AI in every part of the organization.
This encompasses several key areas:
- AI Infrastructure: A significant portion of Amazon's capital expenditure is dedicated to building out its AI infrastructure, particularly for AWS. This includes investments in data centers, custom chips like Graviton and Inferentia, and new services. Amazon is planning a $100 billion AI infrastructure spend in 2025.
- AI Services: Amazon is developing and deploying a range of AI-powered services, including Amazon Nova AI models, Trainium AI chips, and Amazon Bedrock, a marketplace for third-party AI models.
- AI Integration: Amazon is integrating AI into its existing products and services, such as Alexa, AWS, and its e-commerce platform, to enhance customer experiences and improve operational efficiency. Amazon has introduced agentic AI across the seller experience, transforming how sellers manage their businesses.
Financial Performance and AWS Growth
Amazon's overall financial performance in Q3 2025 was strong. Net sales increased 13% to $180.2 billion, compared with $158.9 billion in third quarter 2024. AWS segment sales increased 20% year-over-year to $33.0 billion. AWS segment operating income was $11.4 billion, compared with $10.4 billion in third quarter 2024.
Strategic Implications
Amazon's AI investments are not only driving short-term financial gains but also positioning the company for long-term success in the rapidly evolving AI landscape. By forging strategic partnerships, developing its own AI infrastructure, and integrating AI into its core businesses, Amazon is establishing itself as a leader in the AI revolution. CEO Andy Jassy believes that AI represents the biggest opportunity since cloud and probably the biggest technology shift and opportunity in business since the Internet.
