Amazon Slides After Claude's Cheaper AI Model Arrives on AWS
Amazon's shares fell nearly 2.5% to $248.76 on Wednesday after the company announced its partnership with Claude and Anthropic on AWS, which will bring their AI model Opus 5.5 to Bedrock.
The new model is cheaper to use, with a cost of $4 per million input tokens and $20 per million output tokens, representing a 20% reduction from the previous version. According to Anthropic, this could result in a 40% saving on typical workloads due to the model's reduced token usage.
AWS also highlighted that Bedrock supports zero data retention by default for the model, which is seen as an additional benefit. However, investors remain cautious and need to see whether the increased demand for Bedrock will translate into higher usage and spending across AWS.