Michelle Hussein

This is The Michelle Hussein Show.

I'm Michelle Hussein.

Well, so the way I look at it is everyone is looking to diversify.

So in the case of NVIDIA, they want a long tail of cloud players for their chips.

In the case of Microsoft, they want to go beyond OpenAI and diversify into different LLMs.

And because there are so few frontier LLM providers,

Anthropic is the obvious choice.

You can't really invest in Google or Meta's LLMs.

From that perspective, it makes sense that they are looking for diversification.

In the end, when you look at the deployment of these LLMs, there is no doubt that Gemini just released their Gemini 3 LLMs.

The progress is there.

It's just for Microsoft, because they don't have their own LLM,

it makes sense that they are investing in Anthropic and really making sure they have someone beyond OpenAI to look up to because that contract expires in 2032.

So they're really playing the long game here.

I mean, Microsoft has a backlog of $400 billion with a two-year duration.

So they already have a ton of visibility.

This $30 billion is sort of an increment to that.

And that's where they have really differentiated from the other hyperscale cloud providers.

with their backlog, with their shorter duration, and with the visibility and revenue they have from just the GPU and AI workloads compared to all other cloud providers.

So from that perspective, this kind of helps their revenue visibility at least for the next two to three years.