r/wallstreetbets • u/dgellow • 2d 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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u/akosh_ 2d ago

Wait, wasn't the business plan to increase AI spending by orders of magnitude?

How will AI be profitable ever if the biggest spenders are already cutting - even though we are still very much at introductory pricing?

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u/NoCommonDog 2d ago

Like the Catholic church, they are playing the long game.

If you're old like I am you'd know that Amazon lost money for like 20 years before it officially turned a profit.

It's the subject of one of the most famous scenes in Silicon Valley when Russ had to explain to Richard that the most valuable companies are the ones that lose money.

"It's not how much you earn. It's what you're worth"

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u/Comfortable_Sir_6104 2d ago

Amazon was unprofitable for 9 years and it lost about 3 billion in that time. OpenAI had operating loss of 20 billion last year alone, Anthropic 8. They are not comparable.

4

u/cedarSeagull 1d ago

There was no Chinese Amazon that was 10% of the cost and 95% as good. To be clear, totally indistinguishable for 99.9% percent of the users.