00:00Mandeep Singh of Bloomberg Intelligence standing by for this breaking news. Mandeep, welcome to the program. These are some big
00:04numbers. How important is this development?
00:07I mean, it's huge when you think about, you know, OpenAI really starting off with Microsoft and now branching into
00:16this big partnership with Amazon.
00:18I think it's really huge in that context. And also, you know, NVIDIA and OpenAI had plans to kind of
00:29partner in terms of almost 100 billion.
00:32Now that has come down to 30 billion. And Amazon is the one who is really stepping up.
00:39And there is some mention about OpenAI using Terranium chips. So all in all, you see a big ecosystem shift
00:48here.
00:48From, you know, the OpenAI original stack, which was Microsoft and NVIDIA, to now really leaning towards Amazon and kind
00:59of using Amazon's chips to develop custom models.
01:03And obviously the scale of investment is huge. And I think Amazon didn't really have a choice, given they had
01:11talked about 200 billion in CapEx this year.
01:13And there wasn't any proof in terms of what they were doing with that 200 billion investment because they are
01:20not training their own large NVID model.
01:22And the cloud growth is trailing the other peers like Microsoft and Google.
01:28So this was a step that they had to take to really kind of change something in terms of, you
01:35know, their 200 billion dollars in CapEx mandate.
01:37What does their access to capital look like at the moment coming into this year?
01:41There were real conversations had in financial circles about the potential, not the high potential, but the potential at least
01:47of this company going bust and not raising enough capital in the years ahead.
01:51How are things shaping up now? So, OpenAI, as you rightly pointed out, had talked about almost $1.4 trillion
01:59in investments and, you know, some through partnerships, some of their own.
02:04And now I think they're coming to the realization that obviously Google has caught up in terms of large NVID
02:11models.
02:11Anthropic models actually are faring better in some use cases.
02:16So they really had to scale back their own ambitions in terms of the CapEx that they could put through
02:24the debt market or private funding.
02:25And now they're leaning more towards the ecosystem where Microsoft, I think, is sort of scaling back here, or at
02:34least OpenAI and Microsoft are not getting along that well.
02:38And they had to find a new partner for this CapEx buildout.
02:42And it looks like it will be Amazon.
02:45And the thing about Amazon is Amazon was a big investor in Anthropic.
02:50It still has a pretty sizable stake there, but clearly Anthropic has been using Google more, and they are leaning
02:58more towards using Google GPUs.
03:00And now NVIDIA has an investment in Anthropic as well.
03:04So from that perspective, they're all kind of using each other's cloud and each other's chips now, and it's all
03:10about how much funds you can raise to establish your lead.
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