"How very "Here we go round the mulberry bush," right? Microsoft buys Anthropic's models; Anthropic runs Claude on Microsoft's Azure cloud; Anthropic buys Nvidia's chips; and both Microsoft and Nvidia invest in Anthropic. If that sounds like a big circle going round and round and back again... that's because it is. And honestly, it's making me dizzy."
"On Tuesday, Microsoft, Nvidia, and Anthropic announced strategic partnerships that Microsoft CEO Satya Nadella summed up this way: "We are increasingly going to be customers of each other.""
"For Nvidia, which blew past revenue targets in its Q3 earnings yesterday, posting a 62% surge in revenue growth, this kind of circle game has been a key to its success over the past three years. As Fortune's Shawn Tully recently detailed, the company has been building its own circular ecosystem by investing in-and sometimes financing-its own customers, from OpenAI to CoreWeave. The goal is to engineer a perpetual-motion machine of GPU consumption-a way to guarantee demand in a world where hyperscalers are trying to build their own chips. For example, in September Nvidia committed to investing up to $100 billion in OpenAI. As part of the agreement, OpenAI would purchase "at least 10 gigawatts worth of capacity in Nvidia AI chips. "It's very murky," Seaport analyst Jay Goldberg said recently. ""It's very unclear what the motivat"
Major AI firms are forming closed-loop partnerships where companies serve simultaneously as partners, vendors, and customers. Microsoft, Nvidia, and Anthropic forged strategic deals that include cloud hosting, model licensing, chip sales, and cross-investments. Nvidia’s strategy of investing in customers and financing capacity aims to secure perpetual GPU demand, with commitments such as a proposed up-to-$100 billion investment in OpenAI tied to massive chip purchases. Hyperscalers are also pursuing their own silicon, prompting suppliers to entrench circular ecosystems to guarantee sales. The resulting interdependence intensifies market concentration and creates complex mutual-assurance commercial loops.
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