Amazon is to invest an additional $5 billion (£3.7bn) into Anthropic, in addition to the $8bn it has already invested, as part of an expanded deal to provide cloud infrastructure to the AI start-up.

The investment, which is at Anthropic’s current valuation of $380bn, comes as Anthropic competes with OpenAI amid plans for both companies to hold IPOs as early as this year.

Anthropic has trailed OpenAI in securing compute capacity for its models, and the company said the Amazon deal would help it quickly expand capacity.

It said it has secured 5 gigawatts of capacity for training and deploying its Claude models and plans to spend more than $100bn on Amazon Web Services technologies over the next decade.

That spending includes the use of Amazon’s custom Trainium AI chips, with Anthropic saying it plans to bring nearly 1 GW of Trainium2 and Trainium3 capacity online by the end of the year.

Amazon said it would invest a further $20bn into Anthropic in the future upon the start-up reaching “certain commercial milestones”.

The e-commerce firm earlier this year made a substantial investment in OpenAI involving a use of Amazon infrastructure that is being contested by OpenAI partner Microsoft.