Amazon and Google See Billions in Q3 Gains from Anthropic Stakes, Ownership Percentages Emerge

Amazon and Alphabet, Google's parent company, have reported substantial boosts to their third-quarter profits, driven by the increased valuation of their investments in AI startup Anthropic. Public reports indicate that Amazon's stake in Anthropic stands at 7.8%, while Google's ownership is approximately 8.8%, reflecting the AI firm's soaring market value. This surge highlights the significant financial impact of strategic AI investments on major tech companies' earnings.

Amazon's Q3 earnings revealed a $9.5 billion pre-tax gain attributed to its Anthropic investment, which was classified under non-operating income. This gain follows Anthropic's September funding round, which nearly tripled its valuation to $183 billion, prompting a revaluation of existing stakes under accounting rules. Amazon has committed a total of $8 billion to Anthropic, initially structured as convertible notes, with a portion already converted to equity.

Similarly, Alphabet reported "net gains on equity securities of $10.7 billion" in its Q3 results, largely stemming from its investment in Anthropic. While Google did not explicitly detail its Anthropic gain, previous reports and the context of "unrealized gains from non marketable equity" point to the AI company as a primary contributor. Google has invested approximately $3 billion in Anthropic, including a $2 billion commitment in 2023 and an additional $1 billion earlier this year.

The significant paper gains underscore the intensifying competition in the generative AI space, where tech giants are making substantial bets on promising startups. Anthropic, known for its Claude chatbot, has become a key player, attracting considerable investment from both Amazon and Google. These investments are not only financial but also strategic, with Anthropic leveraging Amazon Web Services (AWS) for its critical workloads and Google Cloud for specialized AI chips.

This financial boon for Amazon and Google reflects a broader trend where investments in private AI companies are beginning to translate into substantial, albeit unrealized, profits for public corporations. The revaluation of Anthropic's worth to $183 billion after its September funding round has provided a clear financial uplift for its major investors. The strategic partnerships also ensure that Anthropic's advanced AI models, like Claude, are integrated into the cloud ecosystems of these tech behemoths, driving future innovation and market positioning.