alt Hacker NewsAnthropic takes $5B from Amazon and pledges $100B in cloud spending in return
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So Anthropic essentially got the same 5% cash back deal anyone who has a Visa Prime card gets? “AI Companies: They’re just like the rest of us”
If you think you need to spend $100B, does using a third-party cloud provider still make sense? It doesn’t matter what sweet deal Amazon is pitching—in that scenario, you’d want to own your stack. Especially in a hyper-competitive field like this, where margins are going to matter a lot soon.
It feels like these hyperscalers are just raising as much as they can giving extremely rosy projections becauses these sooner or later peak is going to be reached (if that hasn’t happened already)
Someone can explain to me what's the expectations for these AI labs?
I mostly see their products as commodity at this point, with strong open source contenders.
Eventually it will become hard to justify the premium on these models.
Sounds like moneygrab is accelerating before consumer grade local models are getting good enough for local inference in few years. Huge house of cards here. Demand skyrocketing until it’s suddenly dropping entirely with ondevice inference.
Isn’t this kind of like the Nvidia/OpenAI deal? Just circulating debt/money
I'm no economist, but how exactly does this make sense? Amazon is basically just giving them 5B which will then be used to repay them back 20x that amount??
I would like Amazon to give me $1 billion for which I promise, even pinky promise, I will pay them $20 billion someday. What a great deal for Amazon!!
I thought vendor financing was illegal.
So they are basically taking debt from amazon which is not a financial institution?
Tulip Corp has reached a definitive finance agreement with Rhine. Rhine will invest 5 Billion guilders in Tulip Corp, and Tulip Corp will be buying 100 Billion guilders of fertilizer and irrigation water from Rhine. This helps Tulip Corp ensure that it's critical infrastructure needs are met.
The best thing for humanity, economy, technology, society, progress and environment is that this scam should come down ASAP.
Wow, big money
Hope this will let them boost their capacity and offer higher limits on code models...
Seems everyone's first instinct here is to complain. Lame. This is an unprecedented situation in human history. Only the US could marshal resources like this to pursue this technology. It's exciting to watch it play out.
> At the heart of this deal is Amazon’s custom chips: Graviton (a low-power CPU) and Trainium (an Nvidia competitor and AI accelerator chip). The Anthropic deal ...
Yeah, totally not desperately seeking investment to keep the party going ...
They owe us money.
I think when they rack up the RAM prices, they should pay for the damage they caused here. I don't need AI anywhere, but the increase in RAM prices is annoying me. Thankfully I purchased new RAM for a new computer, say, 3 years ago, so I can hold out for the most part - but sooner or later I have to purchase a new computer, and I really don't see why I should pay more, solely due to AI companies and greedy hardware manufacturers. Simple-minded capitalism does not work - I consider this a racket as well as collusion.
all your GPUs are belong to us
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hacker news is so useless, look at all these negative cynical comments
And so the bubble keeps bubbling...
Does anyone feel that the jig is almost up? Surely the returns aren’t anywhere close to what investors expect with the sheer amount of cash at this point in time.
Are Anthropic and OpenAI rushing to IPO for immediate cash so they can delay the inevitable? Surely this cycle of robbing Peter to pay Paul to pay John to pay Tim must end.
We are only just now getting a taste of the “true cost” of these tokens. Then there is a lack of compute bottlenecking everything. Even now I’m looking at the 7.5x rate of tokens for Opus 4.7
Open models are promising and cost a fraction of what they proprietary models cost which the big two are vulnerable to when companies start to feel the cost of tokens.
Will data centres be built fast enough and powered sufficiently to lower the cost of compute thus tokens?
Is it just a giant Hail Mary to get to AGI ASAP before the economy collapses?
Above all else, I simply feel the models have plateaued. I am noticing productivity loss for tasks I deem as “complex”