Amazon’s strategic investment in AI startup Anthropic has surged in value, now estimated at $60.6 billion, according to disclosures made by the tech giant. The figure includes $45.8 billion in convertible notes and $14.8 billion in nonvoting preferred stock held by Amazon, reflecting a massive sevenfold return on its $8 billion investment since late 2023. The valuation jump underscores what could become one of Amazon’s most successful technology bets to date. The company has long positioned itself as a key player in the AI race, and its partnership with Anthropic strengthens that position. The two firms have a deep commercial relationship: Anthropic has committed to purchasing 1 million of Amazon’s Trainium AI chips, cementing a strong dependency on Amazon Web Services (AWS) for its infrastructure needs. Anthropic’s most recent funding round in September raised $13 billion at a $183 billion post-money valuation, following a $3.5 billion round earlier that year that valued the company at $61.5 billion. The startup is now reportedly in talks for another funding round that could push its valuation to as high as $350 billion. Amazon’s stake grows with each new round of funding. Its convertible notes automatically convert into preferred stock when Anthropic raises additional capital, meaning Amazon continues to gain equity in one of the most prominent AI startups. This mechanism has already delivered tangible financial benefits: in 2025, conversions generated approximately $5.6 billion in recognized gains, and Amazon recorded a $7.2 billion upward adjustment to its “other income” in the third quarter due to rising valuations. An Amazon spokesperson confirmed that the value of its Anthropic stake increased from $38.5 billion in the third quarter to $60.6 billion by the end of the fourth quarter. The company expects to book an additional $15 billion in gains in its first-quarter “other income” as more of the convertible notes convert into preferred shares. However, Amazon cautioned that these valuations rely on significant judgment. The convertible notes are classified as “Level 3” assets under accounting standards, meaning their value is based on internal assumptions and unobservable inputs rather than active market prices. This is standard practice for stakes in private startups, which lack liquid public trading markets. Anthropic is reportedly considering an initial public offering this year, which could bring greater transparency and market-based valuations. The success of Amazon’s Anthropic investment highlights the financial upside of early bets in transformative technology — and the growing importance of AI infrastructure and partnerships in shaping the future of computing.