Microsoft, Nvidia to Invest a Combined $15 Billion in Anthropic

Bloomberg

Watch Microsoft, Nvidia to Invest a Combined $15 Billion in Anthropic - Bloomberg on Dailymotion

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00:00Is this kind of the worst time to announce more investing in each other?

00:04The market is, I don't know, not taking it that well.

00:06I mean, it feeds the beast, doesn't it?

00:08The idea that everyone is paying everyone else to keep on being their partner.

00:11So Anthropics, yes, committing to buying Microsoft Azure,

00:14so access to its own cloud provision.

00:17But it's still saying, look, Amazon is actually my number one provider of compute.

00:21So Amazon's out there trying to say AWS is safe.

00:24But just these large language model developers have such an underlying need

00:29for compute that they have to go to everyone.

00:31Remember that OpenAI was exclusive to Microsoft.

00:33Microsoft and OpenAI have a different kind of relationship now.

00:36So OpenAI can get compute from Oracle and get compute from loads of other players.

00:40In the same way, Microsoft can start backing other generative AI LLMs.

00:44And so here they are, more embedding Anthropics, Clawed.

00:47Now, Clawed was already available within Microsoft's offering 365,

00:51but we're just deepening those ties.

00:53And more broadly, we're getting, what, a $10 billion commitment from NVIDIA,

00:56a $5 billion commitment from Microsoft in the equity of Anthropic.

01:00And this is as NVIDIA is also saying, we're going to work more closely together

01:04to make sure that these LLMs are far more efficient when they use our kind of architecture,

01:08when they're building on Blackwell, when they're going to be gearing out

01:10into the world of our Rubin architecture, the next set of chips,

01:13we're going to make sure that this is fit for purpose.

01:15So they're all trying to say we're playing safe and nicely here in this big scheme.

01:19What tends to be the thought process of not just like a partnership,

01:22but of actually taking equity in the company?

01:25Why do that and tie your fortune even more so to a company?

01:29It has this feeling of kind of betting the house on these companies that they will succeed.

01:34And in many ways, maybe it's what Anthropic needs for saying,

01:36look, NVIDIA, Microsoft, you've both got equity in OpenAI.

01:40Signal some support of our underlying offering here too.

01:44You continue to buy our equity.

01:46You, your fortunes are tied to our fortunes.

01:50We'll make you a success if you make us a success.

01:52And therefore, it just ties in Microsoft to more broadly offer cloud

01:56in a more equitable manner perhaps to what they have with OpenAI.

01:59But remember, their exposure to OpenAI is much higher.

02:01And then you have the likes of NVIDIA trying to ensure that it has demand for its GPUs going forward.

02:08No wonder they want Anthropic to be a success, OpenAI to be a success.

02:13This is the key question though.

02:14Are these going to end up being commoditized in some way?

02:17Are we going to care whether we're using Claude or whether we're using OpenAI more broadly

02:21if all of them are going to be powered on the same sort of underlying technology?

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