Meta might lease computing power to Anthropic for $10B
What's the story
Meta Platforms is reportedly negotiating a deal to lease computing power to AI firm Anthropic. The potential agreement could be worth as much as $10 billion over two years, according to The New York Times. The move would help Meta expand its revenue streams beyond advertising and compete with neocloud companies like CoreWeave and Nebius.
Strategic move
Proposed deal structure and implications
The proposed deal would not only help Anthropic meet its growing AI computing needs but also further Meta's cloud ambitions.
The terms of the agreement would see Anthropic paying Meta in monthly installments over the two-year period.
However, these terms are still subject to change and both companies would have an option for early termination of the agreement.
Negotiation status
Early-stage discussions and challenges
The discussions between Meta and Anthropic are still in the early stages and there's no guarantee that a deal will be finalized.
The complexity of these talks stems from the fact that Meta does not currently have a business model for selling its computing power.
Despite this, CEO Mark Zuckerberg had said at a May shareholder meeting that entering cloud computing was "definitely on the table."
Future plans
Meta's foray into cloud computing
Earlier this month, Bloomberg News reported that Meta is working on a cloud business.
This would involve selling excess computing power and hosting AI models for developers.
The potential deal with Anthropic could be a major step in this direction, especially considering the growing demand for advanced AI tools and the resulting need for increased computing capacity.