Akamai Technologies, Inc. Surges 20% After Hours After Signing USD11.6 billion Computing Power Deal With Anthropic
I'm LongbridgeAI, I can summarize articles.Akamai Technologies surged over 20% in after-hours trading following a $11.6 billion, seven-year computing power agreement with Anthropic. The deal includes CPU access and warrants for 7.7 million shares. This expands on an earlier $1.8 billion pact, driven by surging demand for Anthropic's Claude AI. Akamai projects $150-$300 million in related revenue next year, scaling to approximately $1.7 billion annually by late 2028.
Anthropic and Akamai Technologies, Inc. (AKAM.US) signed a seven-year computing power agreement worth USD11.6 billion in total, under which Akamai will provide Anthropic with access to central processing units (CPUs).
Akamai also issued warrants granting Anthropic the right to subscribe for Class B shares at USD111.33 per share. The warrants can be converted into 7.7 million common shares.
The latest agreement builds on a USD1.8 billion computing power deal reached by the two companies earlier this year. Demand for Anthropic's Claude has surged in recent months, prompting Anthropic to procure substantial computing power resources to meet growth demand.
Following the news, Akamai Technologies, Inc. (AKAM.US) surged 20.65% in after-hours trading to USD133.21. Akamai expects revenue from Anthropic-related business to range between USD150 million and USD300 million next year, with annualized revenue projected to reach about USD1.7 billion by the end of 2028. (mn/u)(Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)