Freshfields Represents Akamai on $11.6bn Multi-year Agreement with Anthropic

Freshfields is representing Akamai Technologies, Inc. (NASDAQ: AKAM) on transactions that will result in a significantly expanded relationship with Anthropic. These transactions provide for $11.6 billion of contractual commitment over seven years. The multi-year commitment will support Anthropic’s accelerating CPU workload demands by leveraging Akamai Cloud’s distributed AI infrastructure and software. The transaction provides for the potential expansion of the relationship by up to an additional $9 billion, which represents a total potential commitment of approximately $20 billion.

The deal adds to the more than $2.8 billion in multi-year Cloud Infrastructure Services (CIS) commitments across Akamai’s customer base previously announced this year. These agreements underscore a growing demand for Akamai to enable customers to build, deploy and operate AI workloads at scale.

As part of the increased strategic alignment between Akamai and Anthropic, Akamai has issued a warrant to Anthropic for the purchase of non-voting convertible Series B Preferred Stock representing 7.7 million shares of Akamai’s common stock on an as-converted basis, or up to approximately 5% of Akamai’s common stock outstanding, at an exercise price of $111.33 per share of common stock. A portion of the warrant representing approximately 2% of Akamai’s common stock outstanding is expected to vest in connection with today’s announced $11.6 billion commitment. The remaining approximately 3% would vest throughout the successful expansion of the commitment up to an additional $9 billion within the seven-year term of the warrant. Each additional $3 billion purchase of cloud services, at mutually agreed upon terms, will result in the vesting of approximately 1% of Akamai’s common stock outstanding. Learn more about this transaction here.

The Freshfields corporate team is led by Partners Ethan Klingsberg and Taryn Zucker and includes Senior Associates Nick Singer and Alex Canahuate and Associate Jacob Rosenfeld. Partners Steven J. Matays and Jay Cosel advised on tax; Partner Marissa Yu, Counsel Danny Spencer and Law Clerk Eli Merkadeau advised on intellectual property and technology; Partner Kevin Yingling and Special Counsel Andrew Kline advised on antitrust and Partner Kyle Lakin advised on corporate finance.