Anthropic inks US$12bn deal with Akamai

Akamai’s US$11.6 billion deal with Anthropic is not just a major revenue win; it is a fundamental shift in Akamai’s business model. The company, known for content delivery and cybersecurity, now sees its cloud computing segment growing "extremely fast." This capital expenditure for CPUs and networking gear, estimated at US$5.5 billion, is more than six times last year’s total spending. Akamai projects US$1.7 billion in annual revenue from Anthropic by 2028.

The deal’s structure, including a warrant for Anthropic to acquire Akamai shares, reflects a growing trend of circular AI investments. Wall Street investors are concerned these pacts obscure real demand for AI services. For Asia, this model could reshape how regional cloud providers compete. Companies like Alibaba Cloud and Tencent Cloud may face pressure to offer similar equity-linked deals to secure major AI clients, straining their own capital expenditure plans.

The thing to watch is whether other major AI developers demand similar equity stakes from their cloud providers. Akamai’s CEO Tom Leighton called the warrant a "serious step." If this becomes standard practice, it will change how Asian hyperscalers structure their partnerships. The deal’s success for Akamai hinges on its ability to deliver the promised computing power efficiently through 2028.