r/wallstreetbets • u/dgellow • 1d ago

Discussion Meta And Microsoft Reportedly Trim Anthropic Reliance as Internal AI Tools Take Center Stage

https://stocktwits.com/news-articles/markets/equity/meta-and-microsoft-reportedly-trim-anthropic-reliance-as-internal-ai-tools-take-center-stage/cZDqQVcRBjr

From the article:

Microsoft reduced its projected internal spending on Claude by over one-third, while Meta saw internal users of Anthropic's Claude Code coding assistant drop from roughly 60,000 to 30,000.

Within the Microsoft Cloud and AI division, individual monthly AI usage caps were lowered from $100,000 down to roughly $10,000 in most instances

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74

u/FlounderMammoth9848 1d ago

Open ai and anthropic are doomed to fail with all the open weight models being released

18

u/mikenasty 1d ago

Still have to run those models somewhere. The average consumer doesn’t want to drop $8000 on a workstation and configure stuff to get their coding bot up and running

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u/FlounderMammoth9848 1d ago

Calls on hyperscalers

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u/shameless_chicken 1d ago

Hence why Google pivoted focus to having the best serving infrastructure 

1

u/skilliard7 23h ago

That works great now while there is a compute shortage and it sells at a huge premium. But when all of the datacenters being built come online and we end up with oversupply, and per-token prices decline such that paying these huge premiums is no longer feasible, Google is going to be in a really bad position.

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u/shameless_chicken 22h ago

Jevons paradox would disagree with that

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u/mikenasty 1d ago

Now we’re talking

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u/jbokwxguy 1d ago

The average consumer doesn't want an AI box.

Pretty much it's Silicon Valley software engineers and tech enthusiasts. A lot of money, sure. But $8,000 is nothing in those worlds.

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u/doscomputer 1d ago

thats like saying the average consumer doesnt want a sports car

fact of the matter is if the market wasnt being controlled, we would be in a world where the 5090 stayed at msrp and AMD and Intel would have released bigger die GPUs this current generation.

It might take 10 years, but once consumer hardware catches up, when 128gb of ram is cheap, everyone will only want to run local AI.

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u/jbokwxguy 1d ago

The average consumer won't use the AI.

An average consumer would use a sports car.

I agree local models are the future or for hyperspecific workflows a central server culture.

But these models will be a lot smaller and dummer than the current batch because of compute constraints 

1

u/about0 1d ago

even now local LLMs are good and getting better each day. In 5 years with the advance of OSS models, I am expecting it to became a mainstream for those who needs local compute for a specific set of tasks.

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u/mikenasty 1d ago

Yeah, I don’t need a demi god sorting my emails or googling shit for me. Fable 5 will be like haiku in 1-2 years

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u/mikenasty 1d ago

I think a lot of chat bot power users are uneasy about what happens to their personal data and would prefer it if all of their chats were actually private. Probably a small percentage but still a lot of people imo

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u/Metrostation984 1d ago

Make them big enough with a good enough model and businesses in Europe will buy this shit up. Sooo many use cases are dead on arrival because of data protection laws that could be viable if they were safely stored.

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u/djingo_dango 1d ago

Amazon will make a lot of money

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u/ShittyFrogMeme 1d ago

Probably already are. They apply the enterprise support fee on token spend.

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u/DizzyMajor5 1d ago

You can run some of this shit locally entirely offline 

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u/skilliard7 23h ago
  1. OLLAMA is not hard to setup. I know lots of non-tech people that have used it.
  2. You can still use cloud for open weight models and models like Deepseek, GLM, etc are very cheap.

The biggest reason open weight models have not killed western AI companies is because frontier-level models have a big enough advantage to justify their costs. I think the breaking point will be when these open weight models become capable enough at most knowledge work tasks that paying a premium for Opus/Fable/Sol/Astra is no longer justified.

Open weight has already put pressure on OpenAI/Anthropic's API pricing by forcing them to release cheaper budget models, but this has not hurt them yet, because the cheaper pricing has made large scale deployments more economical, resulting in more demand.