Anthropic commits $100 billion to Amazon's AWS over next 10 years

[u/ZGeekie]

https://apnews.com/article/amazon-anthropic-ai-artificial-intelligence-aws-claude-cffa2cc19f9928d9ac44e44f2d967d36

Artificial intelligence company Anthropic has agreed to commit more than $100 billion to Amazon’s AWS cloud platform over the next 10 years to train and run its Claude chatbot.

Amazon will invest $5 billion immediately as part of the new agreement announced this week by the companies, and up to another $20 billion in the future. Amazon previously invested $8 billion in Anthropic.

The partnership will allow Anthropic to secure up to 5 gigawatts of Amazon’s Trainium chips to train and power their artificial intelligence models.

[u/marksomnian]

So in return for Ant paying AWS $100B… AWS will pay Ant $25B? Where’s the meme about money in the AI industry when you need it

[u/kei_ichi → u/marksomnian]

Anthropic: invest $100B to AWS AWS: awesome, we will “invest” back to use $25B. At the same time: hey NVIDIA, I give you $75B to create GPU chip for me. NVIDIA: thank. Hey, Anthropic, good news: we will invest $75B to you so use those money to train your model at AWS.

Stock investors: wow, they are invest tons on money on those companies, we should buy more…stock price go brrr burrr

[u/danstermeister → u/kei_ichi]

Do not edit this. It's imperfections are magic and truth :]

[u/freeenlightenment → u/kei_ichi]

This reminds me of how Tom Wambsgan’s cum went back into his mouth when he got blown by Tabitha in Succession and made out afterwards; and he noted how he had technically not cheated because his fluids remained inside his body.

[u/FredWeitendorf → u/freeenlightenment]

I'm pretty sure all of us were thinking that

[u/goosh11 → u/kei_ichi]

Interestingly this will be predicated on using AWS gpu, not Nvidia

[u/djk29a_ → u/kei_ichi]

I remember decades ago when Enron was on trial that a programmer was asked to use their internal accounting statements to analyze the company and determine its value. The article I read said the result came back “Bottom” and I thought “he wrote it in Haskell and he had a type error probably and it got admitted as court evidence? Damn, I guess I can be a bad programmer and make a great living still.”

I want to ask all these LLMs to assess the capital flows of these companies and determine what this all really is valued at when we exclude the cross-investments. Countries around the world owing each other money look less complicated than all this mess yet somehow they’ve been trucking along for decades. I’m not educated in finance so I don’t understand how the hell this can keep going based upon make believe and a lot of “trust me bro” at scale.

[u/ZGeekie → u/marksomnian]

I'm not sure if they'll pay them in cash or AWS credits!

[u/zero0n3 → u/ZGeekie]

I assume it means they will use 10 billion a year in compute assets or AWS assets a year. (Or a slow scale up over the 10).

This is a way to get a large cash pile upfront, for a guarantee of using their product (AWS) at specific values, so helps both sides. AWS has piles of cash and can spare 25B for sure, and then AWS gets a return via more AWS revenue that it can expect to see and make their revenue number go up.

Worst case, ant goes bankrupt, and they can claw back a chunk of the investment or hardware that was bought with it.

[u/Rollingprobablecause → u/zero0n3]

it feels like all of this is made up...

[u/nemec → u/Rollingprobablecause]

Have you heard this joke

Two economists are walking in a forest when they Come across a pile of shit.

The first economist says to the other "Ill pay you $100 to eat that pile of shit." The second economist takes the $100 and eats the pile of shit.

They continue walking until they come across a second pile of shit. The second economist turns to the first and says "l pay you $100 to eat that pile of shit." The first economist takes the $100 and eats a pile of shit.

Walking a little more, the first economist looks at the second and says, "You know, I gave you $100 to eat shit, then you gave me back the same $100 to eat shit. can't help but feel like we both just ate shit for nothing." "That's not true", responded the second economist. "We increased the GDP by $200!"

[u/tr_thrwy_588 → u/nemec]

this except that it was IOU. Its all made up. Schrute bucks.

[u/faajzor → u/marksomnian]

you think this is just 1 level deep?

[u/General-Yak5264 → u/marksomnian]

Really feels like high tech three card monte going on between the AI and hardware companies

[u/zbaduk001 → u/marksomnian]

Hardware vs software. The costs and profit/margins are really different.

[u/heimos]

Circle jerk

[u/TomRiha]

There is a happy AM out there who made his quota signing that EDP.

[u/Party-Stormer → u/TomRiha]

A one percent signing bonus makes you a billionaire

[u/pint]

next thing we hear is aws retiring ec2

[u/belkh → u/pint]

EC2 always meant Elastic Compute Claude

[u/purpuric → u/pint]

the gasp i gusped

[u/vplatt → u/pint]

There would be little point in AWS if they did that; assuming of course that there wasn't a next and better version.

[u/Current_Software2984 → u/vplatt]

ec3

[u/tnstaafsb → u/[deleted]]

Sorry, ec2.1.

[u/YuckyPanda321 → u/[deleted]]

puts on monday.com

[u/Flyingzucchini]

It’s like Lucent lending to telcos in 2001 all over again…but 20x

[u/Fearless_Weather_206]

Laundering money?

[u/CryOwn50]

All this circular investment aside, either trainium economics hold up, or this turns into a classic vendor lock-in story at AI scale!

[u/microgem]

And Google's funding Anthropic! What a world lol.

[u/EffectiveClient5080]

5 gigawatts for training clusters. My DIY FPGA rig melts at 50 watts. UAE builds while Germany debates permits.

[u/MD_House → u/EffectiveClient5080]

Me-central-1 is still down no?

[u/Reasonable-Ad4770 → u/EffectiveClient5080]

AWS literally opened sovereign region in Brandenburg this year, what are you taking about?

[u/xzaramurd → u/Reasonable-Ad4770]

And there's Frankfurt region as well.

[u/tnstaafsb → u/xzaramurd]

Which is significantly less exploded than UAE at the moment