Anthropic cannot fund the new data centers on its own.
Exclusive: Anthropic is moving forward with a plan to control its own servers for developing AI, giving it the ability to cut its computing costs in the long run.
The AI startup has discussed arrangements under which Google would provide a financial guarantee for some of its lease obligations
Full story: https://thein.fo/4xpsMhl
Positive users praise Google's data center strategies while negative users criticize Anthropic's reliance on Google for infrastructure funding as a risky and pathetic dependency.
Anthropic makes more revenue than any other AI model company right now, and it still can't get its new data centers funded on its own.
The Information report says lenders want Google to guarantee the lease payments first. This is the same Google that helps design Anthropic's chips and is selling it around $200 billion in computing power.
Odd position for the revenue leader to be in.
https://www.theinformation.com/articles/anthropic-pursues-first-data-center-leases-seeks-financial-backing-google?rc=bfliih
Anthropic makes more revenue than any other AI model company right now, and it still can't get its new data centers funded on its own.
The Information report says lenders want Google to guarantee the lease payments first. This is the same Google that helps design Anthropic's chips and is selling it around $200 billion in computing power.
Odd position for the revenue leader to be in.
Perhaps lenders know something we don’t? I mean imagine fable 5 weights leak or aside from it open source models catch up, what anthropic has if companies don’t feel its best?
And companies are growing wary overspending on ai tokens, with openai announcing price war, theres a lot if risks.
@ReadFuturist true. Google did a very smart approach in many ways
@kimmonismus that is actually such a wild dynamic for them to navigate.
@PawelJLisowski hmmm.... i see your points and it makes sense. the overspendoing case your arguing with. i hope we find out with the next the information article :D
@theinformation Should investors back a company that deliberately chose not to scale its own compute capacity, only to become dependent on a much larger competitor run by a nut that could pull the rug out from under it at any time?
@theinformation Nice
@kimmonismus @kimmonismus that's wild. makes you wonder how much leverage google has in this whole AI game. kinda feels like a dependency more than a partnership tbh.
@ChainZenit yeah, fully agree
@theinformation Building your own servers. Translation: inference margins get worse the second Claude commoditizes, so control your floor before AWS does
@kimmonismus Dangerous situation for Anthropic to be in. All Google has to do is to stop providing $$ and then call in its loans.
@kimmonismus Google had a strategic position in this ai race from the start cause they knew other labs gonna benchmaxx their models and push hard on talent then the corporate positional stance was the only way to remain and win this case ig for them.
@kimmonismus Kind of shows the leverage that Google has despite not being viewed as having a leading model
@kimmonismus anthropic rakes in cash yet still needs google to co-sign their shit. pathetic rent seeking
@kimmonismus there’s a difference between revenue and solvency and lenders aren’t being lied and deceived by Fable 5 yet
@kimmonismus investor, competitor, and now co-signer lol
@theinformation Anthropic is the homelander of AI
@kimmonismus everyone is trying to use everyone's head in the industry.
crazy
@kimmonismus wait so they're making the most money but still need Google to cosign? that's wild
Anthropic cannot fund the new data centers on its own.
Exclusive: Anthropic is moving forward with a plan to control its own servers for developing AI, giving it the ability to cut its computing costs in the long run.
The AI startup has discussed arrangements under which Google would provide a financial guarantee for some of its lease obligations
Full story: https://thein.fo/4xpsMhl
