Alphabet and Amazon's $200B+ Anthropic Payday

Anthropic, an AI company backed by tech giants Alphabet and Amazon, is expected to go public at a valuation of around $2 trillion. Both companies have significant stakes in Anthropic, with estimates suggesting that Amazon owns between 15% to 20% and Alphabet holds between 10% to 15%. This means that their investments will be worth hundreds of billions of dollars when the company goes public.

While both companies will benefit from the IPO, Amazon's larger stake makes it likely to profit more. However, there are some caveats. Anthropic uses hardware from multiple suppliers, including custom chips from Alphabet and Amazon. But Alphabet is also competing with Anthropic in the large language model (LLM) space, which could create tension between the two companies.

Amazon's situation is a bit more precarious, as it relies heavily on Anthropic for its AI models. If Anthropic were to move away from Amazon's computing hardware, it could be difficult for Amazon to compete in the cloud computing realm. However, experts believe that both companies will benefit greatly from the partnership and investment.