The last few years have seen the US stock market continue to embrace the growth of artificial intelligence. With this technology becoming the backbone of the tech sector, it has played a major role on Wall Street. This led many to wonder what Amazon’s (AMZN) AI startup reaching $1.4 billion in revenue means for the e-commerce stock.
Amazon has been one of the clearest images of successful diversification for companies in 2025. It has continued to thrive in the e-commerce and digital advertising spaces for many years. However, its shift toward cloud computing and AI applications has made a popular investment for the foreseeable future.
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Amazon AI Startup Surges: Can it Push AMZN in 2025?
The US stock market finally reversed what had been a troubling few weeks on Wednesday. Among the reversals was Amazon, which was up more than 1% at the midway point in the day. The company has continued to thrive in the ever-evolving technology space, as it has even explored the creation of its very own AI division.
Although its AI projects are less developed, they should continue to have an impact. Indeed, Amazon (AMZN) has backed one AI startup that recently surpassed $1.4 billion in revenue, and it could have implications for the stock.
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According to a recent report, Anthropic, which is backed financially by Amazon, surged to a recorded revenue market earlier this month. They are expecting that to only continue, with the company projecting annualized revenue of $2 billion by the end of 2025. Moreover, it has seen some experts project a peak revenue projection of $4 billion.
If Anthropic continues its growth pace, it could have a massive effect on Amazon. Specifically, it could mirror what OpenAI’s ChatGPT did for Microsoft (MSFT) when it invested $13 billion in the developer.
Amazon stock is expected to soar throughout this year. It currently holds a median price target of $270, up 35% from its current position, according to CNN data. Moreover, its high-end projection shows a 54% upside, sitting above the $300 mark. Its presence in the AI space should help it meet those lofty expectations.
