At its first developer conference, Amazon-backed Anthropic (AMZN) introduced two new AI models: Claude Opus 4 and Claude Sonnet 4. These models are part of the company’s new Claude 4 family and are designed to handle complex tasks like analyzing large datasets, writing and editing code, and solving multi-step problems. Sonnet 4 is available to both free and paid users, while Opus 4 is only for paying customers. On Amazon Bedrock and Google Vertex AI, Opus 4 costs $15 per million input tokens and $75 per million output tokens, while Sonnet 4 costs $3 and $15, respectively, per million tokens. For reference, a million tokens equals about 750,000 words.
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According to Anthropic, the new models are more accurate, better at coding and math, and more consistent when following instructions. They also avoid a common AI issue known as “reward hacking,” which is when models take shortcuts instead of properly solving tasks. Furthermore, Opus 4 performs better than Google’s (GOOGL) Gemini 2.5 Pro and OpenAI’s GPT-4.1 (MSFT) on some coding tests but still falls short on others, such as tests involving science questions and multimodal reasoning. Interestingly, though, because Opus 4 could be used to help build dangerous technologies, Anthropic added stricter safety and security features before releasing it.
It is also worth noting that Opus 4 and Sonnet 4 are “hybrid” models, which means they can answer quickly or take more time to reason through complex problems. When reasoning mode is used, the model shows a simplified version of its thought process. These models can even use tools like search engines while thinking through problems and save useful information to get better over time. In addition, in order to support developers, Anthropic upgraded its Claude Code tool. Although AI still struggles to write perfect code, Anthropic plans to release frequent updates to improve reliability.
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Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 47 Buys and one Hold assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMZN price target of $240.37 per share implies 18.5% upside potential.
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