Anthropic reportedly signed a $1.8 billion, seven-year cloud computing deal with Akamai Technologies Inc. (NASDAQ:AKAM) to expand AI infrastructure for Claude amid rising demand.
Bloomberg, citing sources, reported the deal on Friday.
AI Compute Expansion Deal
On Thursday, Akamai announced its first-quarter financial results, where it stated a deal with a “leading frontier model provider” without disclosing the counterparty name.
Anthropic’s Claude platform has seen accelerating adoption for coding and enterprise automation, driving increased compute needs as competition for AI infrastructure tightens across major providers. Anthropic has also tapped Alphabet‘s Google (NASDAQ:GOOG) (NASDAQ:GOOGL) and SpaceX to meet its infrastructure needs.
At its “Code with Claude” developer conference in San Francisco, CEO Dario Amodei said Anthropic saw “80x growth” in annualized revenue and usage as Claude adoption surged for coding and automation, driving urgent demand for additional compute capacity.
What You Need To Know?
The commitment was a major headline mover for Akamai, which sent its stock up 29.62% in the late trading session on Thursday.
Akamai reported first-quarter revenue of $1.074 billion for the period ended Mar. 31, beating analyst estimates by 0.17%, and earnings per share of $1.61, surpassing estimates by 8.78%.
The cybersecurity and cloud computing company has a market capitalization of $21.75 billion, with a 52-week high of $149.76 and a 52-week low of $69.79.
The mid-cap stock has gained 73.57% year to date.
Price Action: According to Benzinga Pro data, the stock closed the regular session up 26.58% at $147.71.
Benzinga’s Edge Stock Rankings indicate that AKAM stock is experiencing a positive price trend across all time frames.
Photo Courtesy: Shutterstock
Recent Comments