00:00Some breaking news crossing the terminal. Google will invest $10 billion in Anthropic, according to the startup, with another $30
00:08billion potentially to follow.
00:10Anthropic said Google's committing to invest $10 billion now in cash at a $350 billion valuation, the same value it
00:17was at in a funding round in February, but not including the money raised.
00:22Bloomberg's AI reporter Shereen Ghaffari has the story and is with us now. Not straightforward, but potentially big numbers. What
00:29do we need to know? How is this structured?
00:32That's right. So this is part of a bigger trend we're seeing where the big tech companies are investing some,
00:36you know, eye-popping numbers into the main AI labs.
00:42And Anthropic being one that especially is in a moment when it needs more compute as it's seeing its demand
00:48soar for products like Cloud Code.
00:49So up to $40 billion. We're just showing shares of Alphabet and Google. They shot up when the headline hit.
00:57That's not a surprise. How do we get up to $40 billion? How is it structured?
01:01So there are certain milestones in place. They have not disclosed what. That is similar to what we've seen with
01:07some past deals between NVIDIA and OpenAI.
01:11And, you know, it's always a potential in the future, right, when we're talking about beyond that initial $10 billion.
01:18However, that $10 billion alone is not to be discounted.
01:22Again, these are sort of unprecedented amounts that we're seeing these labs raise on the strength of the demand that
01:29they're seeing.
01:30However, at the same time, seeing high cost and high need for compute.
01:35I find Anthropic to be, and its strategy, to be so interesting. So if OpenAI's strategy was to spend a
01:42lot on its own infrastructure, to me, Anthropic seems to think, OK, I need to do deals that get me
01:47capacity, but in a way that they don't need to spend that much money.
01:51Is that the right read on how they go about it?
01:54I think that Anthropic has not been as flashy in the past in some of its announcements.
02:00We saw Stargate and, you know, OpenAI announce it in the Oval Office with President Trump.
02:06We've also seen, you know, OpenAI maybe talk about some of these projects a little earlier than Anthropic.
02:11That being said, Anthropic's also, its products have really fully taken off a little later than OpenAI, too.
02:17So they may be at different moments in their kind of curve of trying to get this compute.
02:21But as I've reported in the past, OpenAI has said that, you know, they've been early to this and that
02:27they feel confident that they have secured this compute well in advance of this current moment.
02:32OK, to recap, Google plans to invest up to $40 billion into Anthropic.
02:37It starts with $10 billion in cash now at a $350 billion valuation.
02:43Bloomberg's Shereen Ghafari with a big breaking story.
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