Amazon to invest another $4B in Anthropic
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Re: Amazon to invest another $4B in Anthropic
#2> Amazon Web Services will also become Anthropic’s “primary cloud and training partner,” according to a blog post. From now on, Anthropic will use AWS Trainium and Inferentia chips to train and deploy its largest AI models.
I suspect that's worth more than $4B in the long term? I'm not familiar with the costs, though.
Re: Amazon to invest another $4B in Anthropic
#3Can someone with familiarity in rounds close to this size speak to their terms?
For instance: i imagine a significant part of this will be “paid” as AWS credits and is not going to be reflected as a balance in a bank account transfer.
Re: Amazon to invest another $4B in Anthropic
#4Is this really a $4B investment, or credits on AWS?
AWS margins are close to 40%, so the real cost of this "investment" would be way less than the press release.
Re: Amazon to invest another $4B in Anthropic
#5Curious if anyone knows the logistics of these cloud provider/AI company deals. In this case, it seems like the terms of the deal mean that Anthropic ends up spending most of the investment on AWS to pay for training.
Does anthropic basically get at cost pricing on AWS? If Amazon has any margin on their pricing, it seems like this $4B investment ends up costing them a lot less, and this is a nice way to turn a cap ex investment into AWS revenue.
Re: Amazon to invest another $4B in Anthropic
#6I'
m not sure how they make it back. The guardrails in place are extremely strict. The only people who seem to use it are a subset of developers who are unhappy with OpenAI. With Bard popping up free everywhere taking away much of the general user crowd and OpenAI offering the mini model always free and limited image generation / expensive model. Then you have to do it yourself crowd with llama. What is their target market? Governments? Amazon companies?There free their offers 10 queries and half of them need to be used to get around filters I don't see this positioned well for general customers.
Re: Amazon to invest another $4B in Anthropic
#7Curious if anyone knows the logistics of these cloud provider/AI company deals. In this case, it seems like the terms of the deal mean that Anthropic ends up spending most of the investment on AWS to pay for training. Does anthropic basically get at cost pricing on AWS? If Amazon has any margin on their pricing, it seems like this $4B investment ends up costing them a lot less, and this is a nice way to turn a cap ex…
One hand washes the other.
Re: Amazon to invest another $4B in Anthropic
#8Re: Amazon to invest another $4B in Anthropic
#9Curious if anyone knows the logistics of these cloud provider/AI company deals. In this case, it seems like the terms of the deal mean that Anthropic ends up spending most of the investment on AWS to pay for training. Does anthropic basically get at cost pricing on AWS? If Amazon has any margin on their pricing, it seems like this $4B investment ends up costing them a lot less, and this is a nice way to turn a cap ex…
Yes exactly.
This was the brilliance of the original MSFT investment into OpenAI. It was an investment in Azure scaling its AI training infra, but roundabout through a massive customer (exactly what you’d want as a design partner) and getting equity.
I’m sure Anthropic negotiated a great deal on their largest cost center, while Amazon gets a huge customer to build out their system with.
Re: Amazon to invest another $4B in Anthropic
#10Is this really a $4B investment, or credits on AWS? AWS margins are close to 40%, so the real cost of this "investment" would be way less than the press release.
https://techcrunch.com/2024/11/22/anthropic-raises-an-additi...
> "This new CASH infusion brings Amazon’s total investment in Anthropic to $8 billion while maintaining the tech giant’s position as a minority investor, Anthropic said."