Anthropic takes $5B from Amazon and pledges $100B in cloud spending in return

ozgrakkurt

So they are basically taking debt from amazon which is not a financial institution?

spwa4

> At the heart of this deal is Amazon’s custom chips: Graviton (a low-power CPU) and Trainium (an Nvidia competitor and AI accelerator chip). The Anthropic deal ... Yeah, totally not desperately seeking investment to keep the party going ...

zaevlad

Hope this will let them boost their capacity and offer higher limits on code models...

jinushaun

Isn’t this kind of like the Nvidia/OpenAI deal? Just circulating debt/money

iot_devs

Someone can explain to me what's the expectations for these AI labs? I mostly see their products as commodity at this point, with strong open source contenders. Eventually it will become hard to justify the premium on these models.

shubhamjain

If you think you need to spend $100B, does using a third-party cloud provider still make sense? It doesn’t matter what sweet deal Amazon is pitching—in that scenario, you’d want to own your stack. Especially in a hyper-competitive field like this, where margins are going to matter a lot soon. It feels like these hyperscalers are just raising as much as they can giving extremely rosy projections becauses these sooner or later peak is going to be reached (if that hasn’t happened already)

gabrielsroka

$25B https://news.ycombinator.com/item?id=47844891

sensanaty

I'm no economist, but how exactly does this make sense? Amazon is basically just giving them 5B which will then be used to repay them back 20x that amount??

ChrisArchitect

https://www.anthropic.com/news/anthropic-amazon-compute https://www.aboutamazon.com/news/company-news/amazon-invests...

secondcoming

all your GPUs are belong to us

mikert89

hacker news is so useless, look at all these negative cynical comments

anonyfox

Sounds like moneygrab is accelerating before consumer grade local models are getting good enough for local inference in few years. Huge house of cards here. Demand skyrocketing until it’s suddenly dropping entirely with ondevice inference.

wg0

The best thing for humanity, economy, technology, society, progress and environment is that this scam should come down ASAP.

DougN7

I would like Amazon to give me $1 billion for which I promise, even pinky promise, I will pay them $20 billion someday. What a great deal for Amazon!!

shevy-java

They owe us money. I think when they rack up the RAM prices, they should pay for the damage they caused here. I don't need AI anywhere, but the increase in RAM prices is annoying me. Thankfully I purchased new RAM for a new computer, say, 3 years ago, so I can hold out for the most part - but sooner or later I have to purchase a new computer, and I really don't see why I should pay more, solely due to AI companies and greedy hardware manufacturers. Simple-minded capitalism does not work - I consider this a racket as well as collusion.

Rover222

Seems everyone's first instinct here is to complain. Lame. This is an unprecedented situation in human history. Only the US could marshal resources like this to pursue this technology. It's exciting to watch it play out.

hirako2000

I thought vendor financing was illegal.

XCSme

And so the bubble keeps bubbling...

ryanshrott

Wow, big money

fred_is_fred

Tulip Corp has reached a definitive finance agreement with Rhine. Rhine will invest 5 Billion guilders in Tulip Corp, and Tulip Corp will be buying 100 Billion guilders of fertilizer and irrigation water from Rhine. This helps Tulip Corp ensure that it's critical infrastructure needs are met.