Elon Musk Admits He Underestimated Anthropic's AI -- Why Amazon Investors Should Care
The AI rocket ship is turning into a fruitful partnership with Amazon.
Overview
It takes a lot for Elon Musk to admit he's wrong. A year ago, the leader of SpaceX and Tesla said that Anthropic would never be a leader in artificial intelligence (AI). Today, he has admitted this was incorrect, with Anthropic the fastest-growing AI start-up in the world, with annualized revenue estimated at double that of its competitor OpenAI.
For Musk, this means potential AI infrastructure revenue at SpaceX, which just signed a nice commitment from Anthropic. But there is another megacap technology company that may benefit even more from Anthropic's meteoric rise: Amazon (NASDAQ: AMZN).
Details
Amazon made an early bet to become the lead infrastructure backer for Anthropic, likely after its cloud competitor, Microsoft, did the same with OpenAI. Amazon has invested over $10 billion in Anthropic and has committed to investing a total of $33 billion in the start-up. In return, Anthropic is going to utilize Amazon Web Services (AWS) as its primary cloud provider, spending $100 billion or more with Amazon.
Source
Originally published at www.fool.com.