> ” AWS will become Anthropic’s primary cloud provider” How much of this becomes creative accounting? AWS gets to reduce its profits by making this investment, which means they pay less taxes. Then with AWS’ own money, they will get to recognize this as new AWS cloud revenue continuing their sales growth. While all during which they also get an equate stake. This seems like a creative way for AWS (and Microsoft with…
This has been Amazon strategy for a long long time now, almost two decades.
But Bezos views this in a different way, not as an accounting trick to look good to investors, but as a way to kill the competition, since you have lower costs by not paying taxes, so you can redirect a part of what would have been taxes to attract customers (lower prices, excellent customer support, ...)