Anthropic in Talks to Use Google AI Chips

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00:00What is your take here in your thesis on what this reporting about Anthropic and Google represents?

00:07See, there are two aspects of it. Anthropic has been working closely with Amazon Web Services.

00:12It also has investment from Google, so it is logical that they will be using some cloud

00:17capacity from Google as well. But the big question is whether this talks a little bit

00:21about AWS's infrastructure or this is just a matter of looking for capacity at this point

00:27because everybody is constrained. Microsoft recently signed some new deals with a couple of new clouds

00:32which gives us some insight that there may be more of an issue of they are not being able to build

00:38infrastructure as the demand is coming in. And that's no different than what's happening with

00:43OpenAI also. So it could be just a capacity issue. Longer term, we anticipate all large language models

00:50to work with almost every hyperscale cloud provider that's out there because of the size of

00:56you know, the expectations when this gets to the enterprise level.

01:00So let's linger on that last point. We'd reported just last week that Anthropic executives are doing

01:06this tour of the Middle East to secure money, but also just like more capacity. As a case study,

01:12like a lot of people react to our reporting with a lack of understanding of how Anthropic

01:18can need that much capacity. Like, is it justified?

01:21Yeah, I mean, if you look at the economic projections or the growth projections for both

01:26these vendors, whether it's OpenAI or Anthropic, I mean, we are just in a very early innings of

01:31enterprise applications being built using some of these models. So we have, this is a multi-year

01:37trend. The big question obviously is whether the GPUs that they are getting from AWS, are they good

01:43enough or not? That we'll find out over time. I can't make that prediction today whether, you know,

01:48going to Google only for tech reasons. But if you look at what even Microsoft is doing, you know,

01:52they have allowed OpenAI to go out and sign deals with Oracle, with, you know, other NeoClouds,

01:58CoreV being one of them. So, you know, everybody is going and trying to find capacity right now.

02:03And that's the state we're in at this point.