Anthropic's $10 Billion Cloud Deal, Elon Musk on AI at Tesla

**SPEAKER_1** (0:00)
If you want to get access to this episode and my next 30 episodes all ad free, so there'll be no ads on them, go check out my podcast, AI Chat. You can go search for that on Spotify or Apple. It's AI Chat. I'm gonna post all of these news episodes, and I'm also posting interviews. Like I just interviewed the CEO of Cohere. They've raised over a billion dollars for their AI model, talking about what they're gonna be spending the money on and the direction of the AI industry, along with all of this new stuff. So if you wanna go check it out with no ads for free, it is AI Chat. Anthropic has just signed a 10 billion dollar cloud deal with Volta for a Norway data center. Elon Musk spent almost half of the recent Tesla earnings call talking about AI and robotics. Mistral is looking at doing a 23 billion dollar valuation as US export limits are making Europe really think about open weight AI.
AMD has just committed up to 5 billion dollars to Anthropic in a 2 gigawatt chip deal.
Google's frozen V2 chip is looking at a 6 to 10x efficiency gain for Gemini. Before the news, I wanted to highlight one of my favorite Claude use cases that I have been up to over the last two months, and that is vibe coding my very own iOS and Android app. It is a Bible study guide app that has cost me millions of Claude tokens. I actually had to get two Claude Max $200 a month subscriptions to keep up with it because there was so much content to write. I ended up writing over 1,200 chapter guides, so every single chapter in the Bible. There's a study guide that breaks down the history, the context, the backgrounds of the people in it. I went and scraped all of the images from the Met and a bunch of other famous museums to get the last thousand years of incredible historical Christian artwork and add it in there. Then I indexed it so every single image went to the chapter that it was painted about. When you read the study guide, there's paintings of all of this stuff in there. I really tried to put a lot of the human element and the human touch in there. Well, it's also pretty up front that this is AI generated and really helps people understand things with AI. You also have the ability to click on any word, get an explanation of it and any verse and get a background explanation on what is happening in the verse and the context there. This is something I've been working on for many months, but I spent a ton of time making this look beautiful and super aesthetic. So if you're interested in studying the Bible, this is completely free. There's no ads. This is just a labor of love from me. Go check it out. I'll leave a link in the description. And if you're not interested in the app per se, I would still go look at just the page if you want to see the quality of what you can build with Claude. Everything from the screenshots on the app store listing to all of the graphics and images were all generated by AI other than, of course, all of the historical artwork. So go check it out. It's learnofchrist.com is the website, but I'll leave a link in the description to the actual app to download. All of it was built with Claude. Anthropic just locked in $10 billion worth of computing power from Volta. This is a startup that was founded just this year. They purchased six years worth of compute for them, but for me it's pretty wild to see a company starting this year and Anthropic is going and buying the compute from them versus Anthropic trying to stand this up themselves. Like opening up, there's two different strategies that we're seeing right now. I think this is just showing how hard it is for basically all of these AI labs to get chip capacity. I think Texas also just banned all new data centers while they go and audit all of their grids. So there is a lot of headwinds for the data centers, and if you're able to get access, if you're able to get approval and regulatory approval in different locations, I think companies like Anthropic OpenAI are just going to swoop up and get as much bandwidth as they can, meta included. This compute deal in particular is going to be about 133 megawatts. It's a data center in Norway. It was originally built with crypto miner Biddeer, and it's now powered by NVIDIA's newest AI chip, the Vera Rubin. Volta raised $2.4 billion for their valuation. They're based largely on this one Anthropic contract. Anthropic gives them a contract, they're able to raise a ton of money to go and build it for them. This is, I think, something very typical for some of these new GPU cloud startups. They're all competing for AI lab customers, and if they can get the deal, then they can raise more money to build what they need. Anthropic right now is spreading their compute across a bunch of different platforms. You've probably heard a lot of the deals, but AWS is one of the OGs. Google Cloud is actually the OG. They were the first ones to give them $300 million, which seemed like an insane amount of money when they were a much, much smaller company. SpaceX has signed a big deal with them, where they pay them almost a billion dollars a month, and now Volta. All of this, I think, is reducing the risk that any one single provider is going to run short if there's a major model launch or their usage is really ramping up. They have Amazon, they have Google, they have SpaceX, they have Volta, and I'm sure they'll roll out more. It's interesting because OpenAI and some others feels like they might be a little bit more restricted or they might be, you know, they have less providers and they're trying to build it out on their own, so it'll be interesting to see which of these two strategies works the best. AI labs right now are going way past just relying on a handful of cloud giants and they're willing to pay premium prices, about 12.5 million per megawatt per year if they can lock in dedicated capacity years ahead of time. So it's not just like, hey, we'll pay this price today. It's like, we'll pay this price today for six years. And that's what they're really looking for, is this extended capacity.