This Is How Much Anthropic and Cursor Spend On Amazon Web Services
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Anthropic spent $2.66 billion on AWS through September 2025, exceeding its estimated $2.55 billion revenue for the same period. The company's AWS costs increased 174% from January to September 2025, consuming 88-227% of monthly revenue depending on the period. Cursor, Anthropic's largest customer, saw its AWS bills double from $6.2M to $12.6M in June 2025 after Anthropic introduced Priority Service Tiers that significantly increased costs for prompt caching. The analysis reveals that AI model providers' operational costs scale linearly with revenue, suggesting current pricing models are unsustainable without dramatic price increases that could drive away customers.
Table of contents
Subscribe to Ed Zitron's Where's Your Ed AtSubscribe to Ed Zitron's Where's Your Ed AtSome Initial Important DetailsAnthropic’s Compute Costs Are Likely Much Higher Than Reported — $1.35 Billion in 2024 on AWS AloneWhere Is Anthropic’s Money Going?What Does “Annualized” Mean?Anthropic’s Monthly AWS Costs Have Increased By 174% Since January - And With Its Potential Google Cloud Spend and Massive Staff, Anthropic Is Burning Billions In 2025Anthropic’s AWS Costs Increase Linearly With Revenue, Consuming The Majority Of Each Dollar Anthropic Makes - As A Reminder, It Also Spends Hundreds Of Millions Or Billions On Google Cloud TooAn Estimate of Anthropic’s Potential Cloud Compute Spend Through SeptemberAnother Note About Cursor’s AWS Spend - It Likely Funnels Some Model Spend Through AWS, But The Majority Goes Directly To Providers Like AnthropicAnthropic Timed Its Rent-Seeking Service Tier Price Increases on Cursor With The Launch Of A Competitive Product - Which Is What’s Coming To Any AI Startup That Builds On Top Of Its ProductsSubscribe to Ed Zitron's Where's Your Ed At5 Comments
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