"Asked point blank by Quick whether high-level AI deals were circular, with the CEO-soothing caveat that "it doesn't look like that's what [Amazon] are involved in," per Quick, Jassy said it's all about both sides seeing an opportunity to make money."
"The companies that fund that compute are happy to invest in the AI companies themselves if it means an opportunity to provide said compute - which sounds an awful lot like a circular deal despite Jassy not using the term - but he seemed to be okay with it because the AI companies are such impressive outfits. "These are unusual companies that have been building amazing models for 10-plus years and are reshaping the way people use applications," Jassy explained. "Companies have opportunities to invest in companies. Those companies are impressive companies and you're just seeing some of that.""
""The AI labs are consuming gobs and gobs of compute right now," Jassy said. "And ... they're trying to find ways to fund that compute.""
Amazon highlights that AI labs are consuming massive amounts of compute and are seeking funding mechanisms to cover that demand. Companies that can provide compute have been investing in AI firms when those investments create opportunities to sell infrastructure, producing potentially circular ties between model makers and infrastructure providers. Amazon characterizes many AI firms as unusual and impressive, built on years of model development that are reshaping application use. Amazon also acknowledges that substantial investments are risky, not all will succeed, and outcomes for the industry remain uncertain.
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