{"id":594027,"date":"2026-08-15T12:04:12","date_gmt":"2026-08-15T12:04:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/594027\/"},"modified":"2026-08-15T12:04:12","modified_gmt":"2026-08-15T12:04:12","slug":"elon-musk-admits-he-underestimated-anthropics-ai-why-amazon-investors-should-care","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/594027\/","title":{"rendered":"Elon Musk Admits He Underestimated Anthropic’s AI — Why Amazon Investors Should Care"},"content":{"rendered":"

It takes a lot for Elon Musk to admit he’s wrong. A year ago, the leader of SpaceX and Tesla said that Anthropic would never be a leader in artificial intelligence (AI)<\/a>. Today, he has admitted this was incorrect, with Anthropic the fastest-growing AI start-up in the world, with annualized revenue estimated at double that of its competitor OpenAI. <\/p>\n

For Musk, this means potential AI infrastructure revenue at SpaceX, which just signed a nice commitment from Anthropic. But there is another megacap technology company that may benefit even more from Anthropic’s meteoric rise: Amazon (AMZN<\/a> -0.94%).<\/p>\n

\"Amazon<\/p>\n

Today’s Change<\/p>\n

(-0.94%) $-2.48<\/p>\n

Current Price<\/p>\n

$262.65<\/p>\n

Key Data Points<\/p>\n

Market Cap<\/p>\n

$2.8TMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.<\/p>\n

Day’s Range<\/p>\n

$262.42 – $265.81<\/p>\n

52wk Range<\/p>\n

$196.00 – $287.20<\/p>\n

Volume<\/p>\n

27.3M<\/p>\n

Avg Vol<\/p>\n

49.9M<\/p>\n

Gross Margin<\/p>\n

50.77%<\/p>\n

Massive cloud commitments<\/p>\n

Amazon made an early bet to become the lead infrastructure backer for Anthropic, likely after its cloud competitor, Microsoft, did the same with OpenAI. Amazon has invested over $10 billion in Anthropic and has committed to investing a total of $33 billion in the start-up. In return, Anthropic is going to utilize Amazon Web Services (AWS) as its primary cloud provider<\/a>, spending $100 billion or more with Amazon.<\/p>\n

This could be highly meaningful for AWS, especially if Anthropic keeps up this growth trajectory and soon clears $100 billion in annualized revenue, eventually reaching hundreds of billions a year. Last quarter, AWS revenue grew 37% year over year to an annualized run rate of $169 billion. A lot of this growth is due to Anthropic. <\/p>\n

On top of this revenue growth, Amazon holds an equity stake in Anthropic estimated at over 10% (the exact figure is not known today). If Anthropic goes public in the largest initial public offering (IPO) in history — which it is reportedly preparing for later this year — Amazon’s stake could be worth something like $250 billion. <\/p>\n

\"Elon<\/p>\n

Elon Musk. Image source: The White House.<\/p>\n

Is Amazon stock a buy because of Anthropic?<\/p>\n

The appreciation of Amazon’s stake in Anthropic will be a nice boost for Amazon, but the real value comes from Anthropic’s commitments to AWS, including Amazon’s homegrown computer chips. This will set the standard for other AI start-ups and Fortune 500 enterprises, leading to even more revenue growth in the years ahead.<\/p>\n

Amazon management believes that AWS can eventually grow to $1 trillion in revenue. It may take a decade or longer for that to happen, but it gives the business a massive growth runway. Right now, Amazon trades at a market cap of $2.86 trillion. If Amazon grows its AWS revenue to $1 trillion, the stock may be worth multiples of that on its own, not even including the e-commerce and advertising businesses.<\/p>\n

For its relationship with Anthropic and more, Amazon stock is worth buying right now.<\/p>\n","protected":false},"excerpt":{"rendered":"It takes a lot for Elon Musk to admit he’s wrong. A year ago, the leader of SpaceX…\n","protected":false},"author":2,"featured_media":594028,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,218,219,61,60,80],"class_list":["post-594027","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-ie","tag-ireland","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/594027","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=594027"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/594027\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/594028"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=594027"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=594027"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=594027"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}