Musk Concedes Mistake on Anthropic as AI Start-up's Growth Boosts Amazon Cloud
Elon Musk recently admitted he underestimated Anthropic's artificial intelligence (AI) capabilities. Just last year, Musk said that Anthropic would never be a leader in AI, but today it is the fastest-growing AI start-up in the world with annualized revenue estimated at double that of its competitor OpenAI.
Anthropic has signed a commitment with SpaceX for potential AI infrastructure revenue and also has a massive cloud deal with Amazon Web Services (AWS). Amazon invested over $10 billion in Anthropic and committed to investing a total of $33 billion, making AWS the primary cloud provider for the start-up. Anthropic is expected to spend $100 billion or more with Amazon.
This growth could be highly meaningful for AWS, which already has an annualized run rate of $169 billion in revenue, growing 37% year over year. If Anthropic continues this trajectory and reaches $100 billion in annualized revenue, it will add significantly to AWS' growth.