Elon Musk Admits He Underestimated Anthropic's AI, Highlighting Benefits for Amazon and Alphabet Investors
Elon Musk publicly reversed his previous dismissal of AI startup Anthropic, calling it 'obviously currently the leader in AI' and praising its latest Claude models. This admission is significant for investors in Amazon and Alphabet, which are two of Anthropic's largest backers. Alphabet owns roughly 14% of Anthropic, and Amazon holds a mid-to-high teens stake, each worth over $100 billion at Anthropic's near-$1 trillion valuation. Beyond equity gains, Anthropic has committed to spending over $100 billion on Amazon Web Services and roughly $200 billion on Google Cloud over the next decade, making it an anchor customer for both cloud businesses. However, the article cautions that a large portion of recent 'AI profits' for Amazon and Alphabet came from marking up Anthropic's paper valuation, not from operating earnings, and the circular investment model relies on the AI boom continuing. Anthropic itself remains unprofitable and heavily spending.
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Elon Musk Admits He Underestimated Anthropic's AI, Highlighting Benefits for Amazon and Alphabet Investors
Elon Musk publicly reversed his previous dismissal of AI startup Anthropic, calling it 'obviously currently the leader in AI' and praising its latest Claude models. This admission is significant for investors in Amazon and Alphabet, which are two of Anthropic's largest backers. Alphabet owns roughly 14% of Anthropic, and Amazon holds a mid-to-high teens stake, each worth over $100 billion at Anthropic's near-$1 trillion valuation. Beyond equity gains, Anthropic has committed to spending over $100 billion on Amazon Web Services and roughly $200 billion on Google Cloud over the next decade, making it an anchor customer for both cloud businesses. However, the article cautions that a large portion of recent 'AI profits' for Amazon and Alphabet came from marking up Anthropic's paper valuation, not from operating earnings, and the circular investment model relies on the AI boom continuing. Anthropic itself remains unprofitable and heavily spending.