Amazon seeks cheaper AI alternatives as Anthropic shifts to token-based pricing
TL;DR
Amazon is looking at OpenAI and other alternatives after a renegotiated contract will shift Anthropic billing to per-token pricing next year.
Amazon is looking for cheaper alternatives to Anthropic’s Claude models after a renegotiated contract will shift to token-based pricing that could substantially increase the company’s AI costs, according to The Information. The new pricing structure does not take effect until next year, but Amazon is already exploring options including OpenAI. The report highlights a deepening rift between two companies that were once inseparable partners in the AI race.
Amazon’s dependence on Claude runs deep. Its coding agent Kiro, workplace assistant Quick, and consumer-facing Alexa for Shopping all rely on Anthropic’s models, according to The Information. A shift to token-based billing would make that dependence far more expensive, particularly after Amazon recently scrapped an internal leaderboard that encouraged employees to burn through as many AI tokens as possible.
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