Amazon and Anthropic agree to pay per token

Amazon has a new deal with AI company Anthropic. They will now pay for using Anthropic's models on AWS by token, not by computing power. This changes how Amazon spends money on AI.

Amazon uses Anthropic's models in many services, like the Alexa shopping assistant, Kiro coding tool, and Quick workplace assistant, because their own Nova models are not as good. This new pricing helps Amazon control costs and rely less on outside AI companies.

Amazon's senior VP Peter DeSantis says they aim to launch a top-level model of their own by next year.