AI Boost: Anthropic and NVIDIA Developments

0:00nvidia is backing a 4.25 gigawatt Ohio data center for open a. in a$600 billion compute deal. Anthropics Q2 revenue hit$11.5 billion. That is a 14X jump just coming up ahead of their IPO. SpaceX just closed the$60 billion cursor acquisition, and that is going to bring all of that AI coding capability into their GPU empire. Grok, not the same Grok from SpaceX, but GROQ that NVIDIA kind of acqui-hired a while back, They just raised$350 million at a$3.5 billion valuation. And this is a pivot from chips. Now they're going to be doing NeoCloud. This is actually an interesting story. OpenAI is publishing emails and iMessages to counter Apple's trade secret lawsuit.

0:49So there is tons of drama going on right there. If you have a task that you find yourself doing over and over again that uses AI, and you find yourself kind of wasting time in the glue layer in the middle, copying and pasting, I'd love for you to go check out the AI Box Builder. It's AI box.ai slash builder, you can describe what you want and will automatically link the AI models together for you. And we will build a working workflow in minutes, you do not have to know how to code, it just automatically builds a workflow for you that you can use over and over again. So you're building these AI workflows, and you're doing all visually, it's one of the best ways that I like to use an AI to help me do repeated tasks and save me a ton of time in the middle.

1:27Nvidia is backing a 4.25 gigawatt AI factory, like I mentioned, this is going to be happening in Ohio and it's happening for OpenAI. They've committed their own money to help secure the land, the power and the buildings. OpenAI has locked in$600 billion worth of NVIDIA chips through 2030. So obviously this is, you know, NVIDIA's biggest customer and it's in their best interest to finance OpenAI and their ability to keep building these. A lot of people criticize it as the circular financing of the AI, the biggest AI companies where OpenAI is going to pay them$600 billion to buy their chips. And then Nvidia is just, you know, going to straight up back them with their own balance sheet to go and buy all of the land, all the data centers, all of the stuff they need.

2:08So this is definitely Nvidia's biggest single customer. But each hardware generation deployed at this site in particular could use 1.5 million Nvidia GPUs, and it can generate about 150 billion to$200 billion in revenue with multiple refresh cycles expected over 20 years, right? Because when you buy GPUs from Nvidia, when opening eyes doing this, they're not buying, it's not a one time deal. But you know, the GPUs get old, their new ones come out, they're going to refresh them. So this is a site that is going to make a lot of money for Nvidia. Nvidia is guaranteeing lease and power payments for about four gigawatts over two decades.

2:46This is definitely different from their traditional model where customers handle all the infrastructure themselves. Nvidia just gives them the chips, they're going to go run it. Now they're actually helping customers finance their own infrastructure. This particular Ohio campus has room to expand to seven gigawatts total. So right now they're kind of getting this all ready to go for about four, but it can expand to seven gigawatts total. And OpenAI's commitment could grow from 12 gigawatts to 16 gigawatts if the full site is built out. So there is a lot of room to grow here. Anthropic has just reported$11.5 billion in Q2 revenue.

3:23That is 14X jump over a year ago where they were at. And this is their first profitable quarter before they filed to go IPO. And the interesting thing is, I think a lot of people know that they're kind of in this race with opening AI to IPO, but there's other people in the race too that are getting ready to have these big kind of blockbuster IPOs. DeepSeek is getting ready to IPO. There's a bunch of other people and there's a lot of money that needs to be raised right now for AI infrastructure, I think for Cloud specifically, OpenAI has a lot of that kind of funding locked in, they've done a lot of deals with big firms like Nvidia, like we were just previously talking about.

3:57But this is something that Anthropic is getting into for the first time, a lot of the infrastructure level of this. So they really kind of do need this money sooner than later. But it's incredible just how much they're able to generate their q2 revenue, more than doubled. So like I mentioned, it's way up, but Q1 was 4.73 billion. And that is so now they're more than double in Q2 of this year. So they're 14x from from last year, but just from last quarter, they're more than double. So that is more than Anthropics entire$10 billion in revenue that they made last year, they were able to make that already, which is wild.

4:34So a lot of these coding tools are driving the growth there. If you're just kind of looking at what segment is using the usage clouds integration into a lot of products. I mean, even cursor, which SpaceX just acquired is driving a ton of the usage, which is, you know, GitHub alternative, and it has a huge chunk of the market. Anthropics annualized run rate hit$47 billion in May, which is above opening eyes$40 billion run rate. So like Anthropic is, you know, basically making more money than opening AI is right now, which is kind of crazy. And of course, there's tons of money in the kind of public markets for AI specifically.

5:142026 IPOs have raised 256.4 billion. That's the most that has actually been raised since 2021. So we're kind of out of that lull, that slump. And now, of course, we're beating all the records. But Anthropic is really trying to time this correctly to get the institutional money that private rounds basically can't give them anymore. and they're trying to do what a lot of people are saying is going to be like a fall debut. So coming soon before winter, possibly next quarter to try to get their IPO over the finish line. SpaceX, like I mentioned, just closed their acquisition,$60 billion to acquire Cursor.

5:50They kind of had an interesting deal if you've been following it, where essentially they, before they went public, they said, Hey, Cursor, like, look, we'll sign a kind of like a letter of intent, if you will, to buy you. And I'm trying to remember what the, what the, you know, cancellation clause was like, look, if we don't end up buying you for 60 billion after our IPO, you know, like, let's say their IPO went terribly wrong, and they lost, you know, tons of money, and it was a flop or something, they couldn't do it, they were going to have to pay billions of dollars to cursor as a breakup clause.

6:16But of course, their IPO went, you know, pretty decently well. And so they were able to go and finished closing that$60 billion acquisition. What's interesting in the previous story, I feel like all these stories are kind of linked. cursor is a major driver of anthropics usage and Anthropics tokens for, you know, Claude essentially. And so now that SpaceX owns it, it's interesting to see if they're going to try to put Grok as it's basically like a distribution channel for all of these AI models. I'd be curious to see if they maybe they like they're obviously not going to force people to only use Grok in there instead of Anthropic and also Anthropics, a customer paying them a billion dollars a month for data center.

6:54So I don't want to rock the boat there. But I wouldn't be surprised if you could see inside of curse or more, you know, pushing towards using Grok that free advertising in there for Grok, or even just coming as the default. And you know, if you're trying to get things done cheaper, they'll probably have that as a cheaper alternative, which would be interesting. So what's interesting, though, is that this whole deal is going to bring cursor into this kind of giant vertically integrated AI stack, the data centers, the chips, the foundational models, all of that is going to be under that, you know, cursor is tapping GPU capacity that SpaceX also rents to Anthropoc and Google.

7:31So it's just kind of a wild company that SpaceX has been able to roll in all of these. This is definitely a powerhouse AI company I would watch in the future. Now pivoting to a different Grok GROQ, they just raised 30 or 350 million dollars at a 3.5 billion dollar valuation. They're going to be pivoting from chips to cloud. What's interesting here is that by raising this money, they're going to be scaling up data centers that are running NVIDIA chips, which is, you know, pivoting away from their own AI processor, which is what they were working on. And if you remember the story of what happened to Grok, they were essentially acquihired.

8:08I mean, not not technically, but very, very close. Their entire kind of leadership team left for NVIDIA for a it was a quote unquote licensing deal. So they NVIDIA paid$20 billion in a licensing deal, they hired away their founder, the top engineers and all of this. And the valuation now of 3.5 billion is about half of what it was a year ago. So the valuation has declined. You know, they got this$20 billion licensing deal. Now they're only worth$3 billion because they gave up so much IP. But they actually operate 13 data centers, which serve about 6 million developers and companies. And they have plans to quadruple compute power from 54 to 200 megawatts by 2027.

8:51So what's wild is this is a company building chips, it was kind of seen as a competitor to Nvidia, I mean, very publicly was trying to compete with Nvidia's GPUs, Nvidia just goes and licenses their technology, and now starts selling it. But in the run up to all of that grok was had purchased or had all these data centers was building all these data centers to help people with compute. And now that they basically like the original company got shelled the the company is not dead it just kind of um turned into a data center licensing or you know resale company which is interesting they shifted from making all of their own chips they had lpus and now they're going to be running nvidia's gpus um and in june they raised 350 or 650 million dollars for this original pivot now they've been able to raise another 350 million dollars but nvidia actually led and they participated in this funding round They were also, you know, there's also simultaneously being Grok's main supplier.

9:44So it's interesting, like NVIDIA kind of gutted the company and they're like, oh, no, we'll still give you more money as long as you're going to keep buying from us. So this is kind of NVIDIA's supplier funder relationship they have with many of these companies. OpenAI has just published a blog post that is trying to counter Apple's trade secret lawsuits. They are releasing a whole bunch of private emails and text messages between the company and their lawyers. Apple is seeking a court order to block two former Apple engineers who are now over OpenAI from accessing Apple's confidential information while the case is proceeding.

10:20This whole lawsuit is just basically kind of centered around Cheng Liu, who is a former iPhone engineer, and Tang Tan, who spent about 25 years at Apple before becoming OpenAI's chief hardware officer. OpenAI said that Apple's lawyers emailed the wrong person after they were confusing two Asian last names, which is contradicting Apple's claim that OpenAI ignored their initial warnings. So OpenAI is like, no, look, you literally emailed the wrong person. Apple alleges that Liu downloaded confidential files after he left, and then he coached all of his colleagues on how to do the same thing. I think we've all heard about the drama.

10:56OpenAI says that Apple employees actually asked Liu to help locate files using his residual access. So why this matters is because OpenAI right now is fighting a massive injunction. So they're going to be going public with evidence they say proved the company never sought or used Apple's trade secrets. The next move now, I think we're basically all just kind of waiting for the judge who's going to decide whether they're going to block the two engineers and OpenAI's hardware team from certain activities while all of this case plays out. A couple other interesting stories in the headlines I wanted to raise is that Whisper has just raised$280 million at a$2 billion valuation.

11:34You've all heard of Whisperflow, which everyone is using for dictation on their phone and other places. Amazon is cutting up rare books to feed their AI models. This is a big thing that Anthropic got a lot of flack for. I think Google might have gotten some flack for. and now Amazon is in the same hot water buying up a bunch of rare books because they're great for data sets. They chop the spines off the books, scan all the pages into their AI model and throw away the book. So not a lot of people are very happy about that. Stripe is nearing a$7 billion plus deal to buy an AI gateway startup, OpenRouter.

12:10We've all been hearing about OpenRouter for a long time. It helps you route your task to the best AI model. Stripe is looking to buy it is trying to become the infrastructure layer for a lot of the payments online. I've even heard, you know, talk that Stripe is looking at buying potentially PayPal before they do their IPO. So everyone seems to be, you know, buying up a lot of these strategic assets before IPO season is fully underway. Apple is shipping a working Siri AI in iOS 27 beta, and it is trained on Google's Gemini. So we know they've been doing a lot of partnerships with Google. and it seems that this is actually how they were able to get series AI off the ground.

12:48All right, thanks so much for tuning into the podcast. Make sure to go check out AIbox.ai slash builder if you want to see the latest on how to actually use AI to create tools and repeat your workflows for you by just describing them. There's also the Playground over on AIbox. You get access to over 80 different AI models for$8.99 a month. You get all of the most famous models from ChatGPT to Anthropic to Google and Grok and everything else, 11 Labs for audio, all that stuff. So go check out AIbox.ai and I'll catch you all in the next episode.