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

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

#71

Post by johnbarron »

cma wrote: post #10
iot_devs wrote: post #7

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.

Everyone using Claude code on a personal subscription is default opted in to getting their data trained on. Private troves of data like are seen to potentially end up in a winner take all scenario. More data, better models, attracts more users, results in more exclusive data (what Altman calls the data flywheel).

>> Everyone using Claude code on a personal subscription is default opted in to getting their data trained on

This is completely not true if you use AWS Bedrock, and applies to both your private that or in a business context. Its one of their core arguments for the service use.

[1] - "...At Amazon, we don’t use your prompts and outputs to train or improve the underlying models in Amazon Bedrock and SageMaker JumpStart (including those from third parties), and humans won’t review them. Also, we don’t share your data with third-party model providers. Your data remains private to you within your AWS accounts..."

[1] - https://aws.amazon.com/blogs/security/securing-generative-ai...

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

#72

Post by inciampati »

anonyfox wrote: post #69

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.

I'm already living in this future. In a decent execution framework, with context management, memory via unix, and mechanisms for web search and access, local models are effectively on par with frontier ones. And they can often be much faster. I'll keep paying fees for the AI companies until they stop truly subsidizing and leading. They are getting close to the edge of utility, but we can use their services now to bootstrap their own demise. Long live running your own software on your own computer.

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

#73

Post by inciampati »

mrbombastic wrote: post #54
stavros wrote: post #44

Earlier quoted context omitted.

Yeah I don't understand it, it's a marathon with three companies perpetually a minute ahead, and people keep saying "I expect the stragglers to catch up". The only thing I can see them meaning is what you said, "in a minute the stragglers will be where the leaders were a minute ago", which, yeah, sure.

It makes perfect sense if you think things cannot improve indefinitely

They do approximate any function... within the range they're trained on. And that range is human limited, at least today.

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

#74

Post by MeetingsBrowser »

shubhamjain wrote: post #11

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…

Going from a company with no experience building and operating datacenters to a company with 100B worth of compute is a multi-decade high risk goal.

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

#76

Post by deskamess »

credit_guy wrote: post #31
shubhamjain wrote: post #11

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…

Here’s the answer to your queation (from the article) > The Anthropic deal specifically covers Trainium2 through Trainium4 chips, even though Trainium4 chips are not currently available. The latest chip, Trainium3, was released in December. On top of that, Anthropic has secured the option to buy capacity on future Amazon chips as they become available.

So it comes down to how much of that $100 bn is in the 'option', I guess. Then it's not an expense at all.

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

#77

Post by superkuh »

credit_guy wrote: post #31
shubhamjain wrote: post #11

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…

Here’s the answer to your queation (from the article) > The Anthropic deal specifically covers Trainium2 through Trainium4 chips, even though Trainium4 chips are not currently available. The latest chip, Trainium3, was released in December. On top of that, Anthropic has secured the option to buy capacity on future Amazon chips as they become available.

Ah. So it's a scalper situation where an unethetical entity buys up all the supply and then resells it for a greater price.

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

#78

Post by bwfan123 »

anonyfox wrote: post #69

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.

> consumer grade local models are getting good enough for local inference

I am waiting for that. Perhaps a taalas kind of high-performance custom hw coding llm engine paired with an open-source coding-agent. Priced like a high-end graphics card which would be pay off over time. It will be a replay of the ibm-mainframe to PC transition of a previous era.

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

#80

Post by notyourday »

mitchell_h wrote: post #33
shubhamjain wrote: post #11

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…

I watched some explain how deepseak got good and the Chinese approach to LLM training. Really wish I could remember it. The premise was China thinks of LLMs not as a thing separate from hardware, but gains efficiencies at each layer of the stack. From Chips to software, it's all integrated and purpose built for training. Wonder if Anthropic is making a mistake by focusing on "consumer" hardware, and not going super s…

> I watched some explain how deepseak got good and the Chinese approach to LLM training.

I distinctly remember reading a big pantie twisting from Sam Altman and Co that Chinese took their stuff, the stuff OpenAI and Co spent billions to create, and used that as the base for $0.00

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