Positive Catalyst for Alphabet via Specialized AI Chips Deal

2 days ago

Parkev Tatevosian

"All right, so Alphabet will supply up to 1 million of its specialized AI chips to Anthropic. A deal worth tens of billions of dollars that deepens its partnership with the fast growing AI startup. I did not expect this deal to be this large. So really, really positive news for Alphabet. Not only does it get tens of billions of dollars in revenue, but it also gets to scale up the manufacturing, which will lower the cost per unit and improve its competitive positioning against rivals like Nvidia."

The speaker highlights a transformative deal where Alphabet supplies specialized AI chips to Anthropic, a move that could generate tens of billions in revenue and enhance manufacturing scale and cost efficiency. This deal is seen as a significant catalyst that improves Alphabet's competitive stance in the chip market and offsets other business pressures.

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