Microsoft, Nvidia Commit $15 Billion to OpenAI Rival

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Caroline Hyde 0:01
So, what will Rachel Reeves' pivotal new budget mean for you?
Robert Peston 0:05
Has an innovative think tank just come up with a solution for replacing stamp duty?
Steph McGovern 0:10
Hello, I'm Steph McGovern.
Robert Peston 0:11
And I'm Robert Peston.
Caroline Hyde 0:12
And we wanted to recommend you our podcast, The Rest Is Money, where we answer questions like these to try and make sense of the UK's economy.
Robert Peston 0:20
Look, we get it. You're a discerning sort of person. You're a Bloomberg listener after all.
Caroline Hyde 0:26
So we're not going to waste your time. Here's why it's worth you searching for The Rest Is Money in your podcast app or watching us on YouTube.
Robert Peston 0:33
Twice a week, The Rest Is Money tells you everything you need to know about the money matters affecting all our lives. Fiscal and monetary policy, housing, immigration, even the high street.
Steph McGovern 0:44
Yeah, we do conversations for curious minds, no dry discussions here.
Robert Peston 0:49
That's why we speak to brilliant and fascinating people.
Steph McGovern 0:52
Yeah, recent guests include Dan Needle, Art Laffer, JP Morgan's Karen Ward and even the Chancellor herself.
Robert Peston 0:59
So why not give us a try? Search for The Rest Is Money. Bloomberg Tech is live from coast to coast with Caroline Hyde in New York and Ed Ludlow in San Francisco. This is Bloomberg Tech. Coming up, Microsoft and Nvidia commit to invest up to $15 billion combined in AI startup Anthropic. This is Saudi Arabia's crown prince is set to discuss tech investments and AI innovation with President Trump today. And gaming giant Roblox takes steps to expand age verification across its platform. We'll discuss with the CEO. But first, we check in on these markets once again under pressure. The Nasdaq off by 1.7%. Now, we have raised $1.8 trillion from this benchmark since the end of October, in large part because some of the key AI players have been on the downside.
Robert Peston 2:00
Bitcoin, though, recovers ever so slightly up. Percentage point, we're at 92,846. Move on to individual movers because it's all around some of our top story today. Cloudflare, we want to check in and we're down 3%. That's after it's been fixed. But we were struggling to get on to NJ Transit. You were struggling to get on to OpenAI's ChatGPT. You were struggling to get on to many a website because of Cloudflare more broadly. And that's as we saw an outage that now they say has been fixed. We're still off by 3%. Let's talk about, though, the top story that we just mentioned, Microsoft and NVIDIA, both committing to invest up to a combined $15 billion in Anthropic in a move that ties the AI developer closer to two of the biggest backers of its rival.
Robert Peston 2:41
OpenAI. Bloomberg's AI editor Seth Feigman joins us for more. It's a tough time to be announcing that you're going to be buying cloud from one company while they're going to be investing equity in another. Just more circular deals, it feels like.
Seth Fiegerman 2:54
This one feels very clearly following the OpenAI playbook that we've been seeing in recent weeks here. Yes, I think Anthropic is taking money from Microsoft and NVIDIA. Anthropic then plans to commit spending to Microsoft's platform using NVIDIA chips. Kind of textbook here, and I think we'll add to some of the anxiety there, but it is on a bit of a smaller scale. Also, our understanding at this point is that this financing is part of a larger investment round to be announced at some indeterminate time. So TBD, how much Anthropic is actually planning to bring in here?
Robert Peston 3:22
I mean, they only just closed a round that valued them at more than $180 billion.
Seth Fiegerman 3:26
This is the new normal. It's a bottomless need, and everyone is tapping everyone else. All the ships have to rise together or else they fail.
Robert Peston 3:32
But what's interesting is Amazon had to make clear that they're still the number one provider of cloud and of training compute to Anthropic. Everyone seems to be in Anthropic now, but how are we seeing that rival the likes of OpenAI?
Seth Fiegerman 3:46
Yeah, I mean, again, this is not an either-or model. It's a yes-and. You know, I think we've seen OpenAI turn to Anthropic's backers, namely Google and Amazon. So Anthropic is... doing the same. Now, there's a lot of intrigue there about what that means about the Microsoft opening our relationship.

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