Amazon Seeks Claude Alternatives as Anthropic's New Token Pricing Raises AI Costs
Updated
Updated · Gizmodo · Jun 29
Amazon Seeks Claude Alternatives as Anthropic's New Token Pricing Raises AI Costs
3 articles · Updated · Gizmodo · Jun 29
Summary
Amazon is reportedly hunting for substitutes for Anthropic's Claude after a renegotiated contract shifted payments to token-based pricing, a change due next year that could sharply increase its AI bill.
Claude is embedded across Amazon tools including coding agent Kiro, workplace assistant Quick and Alexa for Shopping, making the pricing change a potential threat to a broad swath of internal and consumer products.
The search for cheaper models has pushed Amazon toward talks with OpenAI, deepening ties after a reported $50 billion commitment earlier this year that paired Amazon infrastructure with OpenAI model access.
The cost dispute lands amid a wider rupture with Anthropic: Amazon invested $4 billion early on, but tensions worsened after Amazon reportedly flagged Anthropic's Fable 5 to U.S. authorities, contributing to limits on the model.