Microsoft, Nvidia team up with Anthropic in rare OpenAI-less deal

00:00 Speaker A

Paul, I have some breaking news on this Nvidia issue that I want to ask you about.

00:06 Speaker A

We have another partnership, but it doesn’t involve Open AI, it actually involves Anthropic. So Nvidia will invest 10 billion dollars in Anthropic.

00:20 Speaker A

Microsoft will invest up to $5 billion in Anthropic, and Anthropic is committed to purchasing $30 billion worth of computing capacity, deep blue computing capacity, respectively

00:34 Speaker A

Oh Microsoft. We often see these deals have Open AI at the center, but right now it seems like everyone has a deal. Doesn’t this sound like a shotgun approach when it comes to these companies investing in each other? To mix up my metaphors, it feels like flooding the area. So what do you say about this last one?

01:02 paul

I think it’s an incremental positive that we’re at least moving somewhat away from the interdependence on open AI. But there is no doubt that there is a very complex web of relationships between these companies because if you think about Anthropic in particular, one of its largest shareholders is Amazon. Now they are making agreements with Microsoft Azure.

01:27 paul

You’ll expect this to continue, but let me tell you this. I feel pretty good about spending for the next few years because A, 90% of it is coming from hyperscalers who have the funding to easily do it. And B, all the CEOs of these big spenders see this as spending early and heavily on AI infrastructure as critical to their competitive advantage. And if guys like Mark Zuckerberg say that, the meanest man on planet Earth, I believe they will spend the money.