Amazon-backed (AMZN) Anthropic is making a big upgrade to its Claude Sonnet 4 AI model by increasing the context window for enterprise API customers to one million tokens. For context, that is enough to handle about 750,000 words and 75,000 lines of code. This is a major jump from the previous 200,000 token limit and more than double OpenAI’s GPT-5, which offers 400,000 tokens. The new long-context feature will also be available through Anthropic’s cloud partners, including Amazon’s Bedrock and Google (GOOGL) Cloud’s Vertex AI.
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This comes as OpenAI’s new GPT-5 model offers lower pricing and high coding performance. Nevertheless, Anthropic’s product lead, Brad Abrams, says that he is pleased with the firm’s API growth and expects the longer context to bring “a lot of benefit” to coding platforms. Interestingly, unlike OpenAI, which earns most of its revenue from ChatGPT subscriptions, Anthropic focuses on selling AI through APIs, which makes developer-focused platforms critical to its business. The company also recently updated its largest model, Claude Opus 4.1, to improve its coding capabilities.
It is worth noting that having a larger context window can make AI far better at tasks like software engineering, where seeing the entire project leads to more accurate results. Abrams said that it also improves Claude’s ability to work on “agentic” coding tasks, which are complex problems that require the AI to keep track of its steps over minutes or hours. In addition, for API users sending prompts over 200,000 tokens, costs will rise to $6 per million input tokens and $22.50 per million output tokens, up from $3 and $15, respectively.
What Is the Price Target for AMZN Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Amazon stock based on 43 Buys and one Hold assigned in the past three months. Furthermore, the average AMZN stock price target of $264.40 per share implies 19.1% upside potential from current levels.
