Silicon Valley compute crunch pushes Anthropic toward Musk and Meta
Silicon Valley is running low on computing power, and it's shaking up the usual rivalries.
Anthropic CEO Dario Amodei reached out to Meta AI chief Alexandr Wang for help.
Even Elon Musk, who once called out Anthropic, has now teamed up with them, letting Anthropic rent more than 300 megawatts from his xAI venture in a deal worth up to $45 billion.
NVIDIA H100 hourly rents jump 60%
With chips in short supply, competition is fierce. Google even lost a top talent, Noam Shazeer, over resource disputes.
Startups are scrambling for hardware as the hourly cost to rent NVIDIA H100 chips on one-year contracts has jumped 60% in just a year.
Cloud providers are making things tougher too, locking companies into long contracts and big up-front payments just to access the computing muscle everyone needs for AI.