Amazon's Anthropic Notes Reach $97.9 Billion as $18 Billion Bet Caps at 12%

3 articles · Updated · TechCrunch · Oct 28

$97.9 billion is the June 30 value Amazon assigned to Anthropic convertible notes with only $6.2 billion in principal, positioning it as a likely top winner from the IPO.
That gap reflects Anthropic's $965 billion private valuation: Amazon structured much of its 2023-2025 backing as notes that convert at listing, and those notes could turn into as many as 1.84 billion shares.
A 12% partially diluted ownership cap limits how much of the notes can convert immediately, though Amazon can waive it; any excess stays outstanding and converts in later quarters.
Anthropic has already absorbed the surge in note value through a $72.4 billion non-cash first-half 2026 fair-value charge, while Amazon's total investment has reached about $18 billion including $10 billion of preferred stock.
The filing also shows why VCs own surprisingly small percentages despite multibillion-dollar positions, and underscores how Amazon and Google stand to profit both from equity gains and more than $224 billion in combined cloud commitments.