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Is this really a $4B investment, or credits on AWS? AWS margins are close to 40%, so the real cost of this "investment" would be way less than the press releas
by maxclark 2y ago
Is this really a $4B investment, or credits on AWS?
AWS margins are close to 40%, so the real cost of this "investment" would be way less than the press release.
- swyx 2y agohttps://techcrunch.com/2024/11/22/anthropic-raises-an-additional-4b-from-amazon-makes-aws-its-primary-cloud-partner/?guccounter=1 https://techcrunch.com/2024/11/22/anthropic-raises-an-additi... > "This new CASH infusion brings Amazon’s total investment in Anthropic to $8 billion while maintaining the tech giant’s position as a minority investor, Anthropic said."
- mistrial9 2y agook but how much cash, really.. looks ambiguous. ps- plenty of people turning a blind eye towards rampant valuation inflation and "big words" statements on deals. Where is the grounding on the same dollars that are used at a grocery store? The whole thing is fodder for instability in a big way IMHO
- Etheryte 2y agoI don't really see any ambiguity? If the reporting is accurate, the whole $4B is cash.
- mef 2y agowhether cash or credit, it's all going right back to AWS
- hehehheh 2y agoThis is great for creative accounting. AWS now has 4bn in equity and 4bn in additional sales.
- deleted 2y ago[deleted]
- lucianbr 2y agoSo it's a $2.4B investment, announced as $4B. Significantly less, still a huge investment. I look forward to the moment the sunk cost fallacy shows up. "We've invested $20B into this, and nothing yet. Shall we invest $4B more? Maybe it will actually return something this time." That will be fun.
- hehehheh 2y agoIt could be the anthropic models makes bedrock attractive and profitable and more importantly medium term competitive against azure. It seems worth it.