Microsoft, Nvidia to Invest Up to $15 Billion in Anthropic

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

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00:00It seems as though this could really be rivaling OpenAI.

00:03Well, so the way I look at it is everyone is looking to diversify.

00:07So in the case of NVIDIA, they want a long tail of cloud players for their chips.

00:13In the case of Microsoft, they want to go beyond OpenAI and diversify into different LLMs.

00:20And because there are so few frontier LLM providers, I mean,

00:24Anthropic is the obvious choice.

00:26You can't really invest in Google or Meta's LLM.

00:29So from that perspective, it makes sense that they are looking for diversification.

00:34But look, in the end, when you look at the deployment of these LLMs,

00:38there is no doubt that Gemini just released their Gemini 3 LLM.

00:44So the progress is there.

00:46It's just for Microsoft.

00:47Because they don't have their own LLM,

00:49it makes sense that they are investing in Anthropic

00:53and really making sure they have, you know,

00:57someone beyond OpenAI to look up to because that contract expires in 2032.

01:02So they're really playing the long game here.

01:04And then playing the long game for compute demand as well.

01:07How important is that $30 billion to the overall business model?

01:10I mean, Microsoft has a backlog of $400 billion with a two-year duration.

01:15So they already have a ton of visibility.

01:18This $30 billion is sort of an increment to that.

01:21And that's where, you know,

01:22they have really differentiated from the other hyperscale cloud providers

01:25with their backlog, with their shorter duration,

01:28and with the visibility and revenue they have from, you know,

01:32just the GPU and AI workloads compared to all other cloud providers.

01:36So from that perspective, this kind of helps their revenue visibility

01:40at least for the next two to three years.