Sundar Pichai Says Alphabet Can't Build AI Capacity Fast Enough, and Anthropic Has Secured 5 Gigawatts of It.
The search giant is selling multi-gigawatt blocks of the very thing it says it doesn't have enough of. The margin math shows why.
Overview
Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL) said something striking on its second-quarter earnings call in July. Even after committing to as much as $205 billion of capital spending this year, the company still can't build artificial intelligence (AI) computing capacity as fast as customers want it.
"[W]e continue to be supply constrained -- a sign of momentum and rapid adoption," CEO Sundar Pichai said in his remarks on the quarter.
Details
Yet Alphabet has agreed to hand multi-gigawatt blocks of that scarce capacity to a fast-growing outside customer: Anthropic, the AI company behind the Claude models.
Source
Originally published at www.fool.com.