The Circular Economics: $Amazon.com(AMZN)$ is investing an additional USD 5 billion with an option for USD 20 billion more into Anthropic.
In return Anthropic pledges USD 100 billion in AWS spending. Effectively Amazon is paying to acquire a USD 100 customer for its proprietary Trainium & Graviton chips.
The Verdict: By backing both Anthropic and OpenAI, Amazon ensures that regardless of which model wins, the traffic stays on AWS. Its custom Trainium3 chips offer a 50% cost reduction over NVIDIA , giving it a unique price performance lever.
The Anthropic deal is real money as it locks in future revenue but a bubble risk if end user demand for AI models fails to materialise.
@Tiger_SG @Tiger_comments @TigerStars @TigerClub @CaptainTiger
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