The 100 Billion Chatbot Check

Key Takeaways

A hundred billion dollars in cloud computing. That's the commitment that Anthropic, the company behind Claude, just signed with Amazon AWS. So, Amazon is investing five billion dollars now, but the real story is that Anthropic is committed to spending a hundred billion using Amazon's infrastructure. So, this fundamentally breaks how we think about startup economics and and fundraising. Cuz for the last 20 years, a software startup just needed a few laptops and a basic server to scale. But large language models, they're they're they're not just code, they're physical industrial mega projects. To train Claude over the next decade, Anthropic is reserving up to five gigawatts of power capacity. Compared to this dam, this is a one gigawatt dam. You need five of those to power all of the data centers that Anthropic intends to use. >> [music] >> The bottleneck for AI isn't software engineers at all, it's just concrete, physical data centers, >> [music] >> cooling system, and of course access to the power grid. The AI race is really just an infrastructure war now. And we talk about it a lot in our newsletter, but if you aren't backed by one of the three tech giants who own the physical servers, you can't compete at the AI frontier. The toll booth for AI is is closed.