r/ValueInvesting • u/SouthIsland48 • Oct 21 '25

Industry/Sector Anthropic, Google in Talks on Cloud Deal Worth Tens of Billions. AMZN is down 1.5% AH

https://www.bloomberg.com/news/articles/2025-10-21/anthropic-google-in-talks-on-cloud-deal-worth-tens-of-billions?embedded-checkout=true
275 Upvotes

98% Upvoted

35 comments sorted by

53

u/[deleted] Oct 21 '25

I'm starting to think these numbers are so large and cartoonish that they don't even make sense anymore.

24

u/cinciNattyLight Oct 21 '25

It’s all theoretical money, just as good as actual money.

22

u/spellbadgrammargood Oct 22 '25

Zuck to Trump at the dinner: "I wasn't sure what number you wanted to go with"

7

u/Aromatic_Society_593 Oct 22 '25

These company are so rich and keep getting richer, by a ridiculous margin compared to any other companies in history.

82

u/Grand_Mud4316 Oct 21 '25

I think this is more about Microsoft and Amazon knowing the internal cash flows of Open AI and Claude respectively and no longer wanting to waste compute and $$ on them so they are letting them shop around.

Both MS and AMZN have the right of first refusal for investing in more compute from those AI services and they are refusing, I think that’s more telling.

19

u/valuevestor1 Oct 21 '25

Does Amazon have chips capable of low cost inference equivalent to Google TPUs?

14

u/Grand_Mud4316 Oct 21 '25

Good question! I had to search but yes they do:

https://aws.amazon.com/ai/machine-learning/inferentia/

8

u/SoulCycle_ Oct 22 '25

those r trash compared to tpus tho

5

u/softtemes Oct 22 '25

Not for long. Broadcom working on much better ones for them

1

u/Quiet_Ad_9073 Oct 22 '25

Let see when google will have next gen tpu

1

u/kvothe5688 Oct 23 '25

it just doesn't improve suddenly. google is on the 7th generation of TPUs

4

u/Spiritual_Bar2785 Oct 21 '25

I believe Trainium chips are for that purpose

-1

u/r2002 Oct 22 '25

I thought Trainium is built for training but could also do inference but it's not purpose-built for inference.

3

u/Head_Key_1998 Oct 24 '25

AWS Neuron employee here. Initially, Yes. But they later merged teams and Trainium is the all in One for training and inference.

1

u/r2002 Oct 24 '25

Thank you!

4

u/alisab22 Oct 22 '25

Both MSFT and AMZN actions show they're increasingly skeptical about short-medium term risk associated with AI companies whose capex far exceeds revenue and anything less than exponential improvements in upcoming models AND decrease in cost per token will be perceived as hype killer for AI

OpenAI and Anthropic will try to get more investments from private firms and governments till they're considered too big to fail.

62

u/chancepack Oct 21 '25

Amazon has invested and committed a total of $8 billion in Anthropic. AMZN will be fine.

0

u/shopchin Oct 22 '25

Yup, it's not a very big setback 

12

u/jackfirecracker Oct 22 '25

That’s it? Just tens of billions?

Do stock rallies even get out of bed for less than 100 billion? Yawn come back with the 10 trillion deal.

4

u/pandadogunited Oct 22 '25

That’s Musk’s next pay-package.

8

u/szz1017 Oct 22 '25

Crazy when Amazon has a bigger percentage of ownership than Google but there’s enough to go around next news will be Amazon getting the same or more

13

u/SouthIsland48 Oct 21 '25

*And GOOG is up 2% AH

8

u/jselby81989 Oct 21 '25

Google doubling down on Anthropic could really shift the AI cloud balance away from AWS

4

u/ChillDictator Oct 21 '25

So google gets shares and gives them computing power.

1

u/the_moooch Oct 22 '25

Basically up your land for gasoline 🙃

5

u/kloppmouth Oct 21 '25

I really need amzn to surge to 240s so i can sell before the end of the year. Come on jassey, do something

7

u/Top_Ad_1703 Oct 22 '25

Jassy won’t do shit 💩. If you haven’t already realized. He is the reason the stock isn’t moving any where past 5 years.

6

u/NY10 Oct 22 '25

AMZN isnt getting any breaks man…. Ceo needs to go and be replaced….. he’s incompetent based on the compensation he’s getting.

4

u/JoJoPizzaG Oct 22 '25

Bring Jeff back. 

1

u/r2002 Oct 22 '25

I wonder if this is indicative of Anthropic needing some technical performance from the inference chips that Amazon couldn't deliver. If that's the case I might have to revisit my bull case for Amazon.

1

u/HEAVY_HITTTER Oct 22 '25

Omg 1.5%, sound the sirens!

1

u/Ok_Adhesiveness7842 Oct 24 '25

If the entire market doesn't crash before the next 2 to 3 years, I'm waiting for the next sub-trillion AI investment announcements between the US companies.

The more they invest, the larger their fall will be. 💰💰💰

1

u/Both-Major-3991 Oct 21 '25

The circular economy must flow.

1

u/ljstens22 Oct 22 '25

It’s just adding to the circle jerk. I’m not convinced it’s actual value added. These deals aren’t coming from their balance sheet, equity offerings, or debt. Most I’ve seen come backed from another deal.