Key Takeaways
- Akamai secured an $11.6 billion deal with Anthropic for CPU computing capacity over seven years, with an option to expand to $20 billion.
- The agreement validates Akamai’s cloud infrastructure growth strategy, with analysts projecting revenue acceleration and significant 30% EBIT margins.
- Akamai expects to invest $5.5 billion in capital expenditure to build out its own capacity, reflecting a substantial long-term commitment to AI compute.
Akamai Technologies Inc. (NASDAQ: AKAM) saw its shares climb on Friday after securing an $11.6 billion agreement with frontier artificial intelligence firm Anthropic. The deal commits Akamai to providing computing capacity over the next seven years, with an option to extend the hardware terms and total value to $20 billion. Shares briefly surged 16.4% to $128.46 before paring gains to approximately 8% by market close. The Cambridge, Massachusetts-based cloud provider has already seen its stock gain 36% in 2026, with nearly all of that increase occurring in the first quarter.
What Does the Anthropic Deal Mean for Akamai’s Financials?
The deal represents a substantial boost to Akamai’s Cloud Infrastructure Services (CIS) segment. Management commentary suggests this latest agreement could add between $150 million and $300 million to Akamai’s revenue in 2027. This compares to the company’s reported 5% revenue growth in 2025. Analysts at Morgan Stanley estimate that this could increase Akamai’s overall revenue growth estimates from 12.5% to approximately 16%.
Fulfilling the contract requires significant investment. Akamai expects to incur $5.5 billion in capital spending to build out the necessary computing capacity. Oppenheimer analysts calculated the deal to be worth about 77 megawatts of computing power, noting Akamai has not disclosed specific power requirements. Despite the CapEx, analysts predict healthy profit margins for Akamai’s cloud business, with DA Davidson estimating an EBIT Margin of approximately 30% for the $14.6 billion in CIS commitments signed year-to-date at full revenue run-rate.
How Analysts Are Re-evaluating Akamai’s Growth Trajectory
Wall Street has largely reacted positively to the news, seeing it as a validation of Akamai’s strategic shift and growth potential. Piper Sandler, which has an Overweight rating and a $158 price target, stated that the deal’s magnitude drastically changes Akamai’s financial profile, transforming it from a ‘value’ asset to a ‘hypergrowth’ asset. They project CIS revenue to surpass Akamai’s security business by no later than 4Q28 at this pace. Morgan Stanley, with an Overweight rating and a $165 target, believes the bookings momentum increasingly validates the thesis that Akamai’s structural growth profile is materially improving.
The Strategic Shift to CPU-Based AI Computing
The agreement specifically focuses on central processing units (CPUs) rather than graphics processing units (GPUs). Many technologists believe CPU networks are better suited for the coordinated computing tasks often required for agentic AI. The deal also includes an option to broaden the hardware terms, potentially raising the total value to $20 billion. DA Davidson highlights that Akamai will provide dedicated cloud computing capacity and managed support services for Anthropic’s accelerating CPU workload demands, positioning Akamai Cloud for a larger vision that includes conversational voice agents, robotics, and real-time AI video intelligence.
Analyst Perspective & Market Impact
The Anthropic deal marks a significant inflection point for Akamai, reinforcing the company’s strategic pivot into high-growth cloud infrastructure services (CIS). While the $5.5 billion capital expenditure requirement is substantial, it underpins future revenue streams and validates Akamai’s ability to compete for large-scale AI compute contracts. Analysts are particularly focused on the projected 30% EBIT margin for CIS commitments and the potential for CIS revenue to surpass security offerings by late 2028, signaling a fundamental shift in Akamai’s business model from a value asset to a hypergrowth one. The focus on CPU capacity for agentic AI also highlights a differentiated strategy from GPU-centric competitors, and Evercore ISI notes the partnership does not preclude Akamai from pursuing other frontier labs.
| Analyst Firm | Rating | Price Target ($USD) | Key Commentary Highlights |
|---|---|---|---|
| Morgan Stanley | Overweight | $165 | Bookings validate improved structural growth; deal could lift 2027 revenue growth from 12.5% to ~16%. |
| Piper Sandler | Overweight | $158 | Deal magnitude drastically changes financial profile, transitioning Akamai to a ‘hypergrowth’ asset; CIS on track to surpass Security by 4Q28; Anthropic taking a stake in Akamai. |
| DA Davidson | Buy | $185 | Providing dedicated cloud computing capacity for Anthropic’s CPU demands; part of a larger vision for Akamai Cloud. |
| Oppenheimer | Outperform | $180 | Estimated 77 megawatts for Anthropic; ~$5.5B CapEx build at ~$70M/MW. |
| Evercore ISI | Outperform | $175 | Supports multi-year revenue reacceleration thesis; Anthropic partnership does not preclude other frontier AI deals. |
With Akamai projecting substantial capital expenditure to fulfill this massive AI computing contract, the central question for investors is whether the company can efficiently scale its infrastructure build-out while maintaining robust profit margins and attracting further large-scale AI clients. Will the shift to a hypergrowth profile ultimately justify the near-term investment and execution risk?
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