Episode summary
Microsoft, Nvidia to Invest Up to $15 Billion in Anthropic | Bloomberg Intelligence
Bloomberg Intelligence
· · 26 min · Hosts: Paul Sweeney, Scarlet Fu · Guests: Mandeep Singh, Drew Reading, Matt Henriksson, Abigail Gilmartin
Summary
Microsoft and Nvidia are both committing to invest in Anthropic, while Anthropic is separately committing to buy $30 billion of Azure compute capacity. The analyst framed the deal as another example of the circular, compute-heavy financing structure around frontier LLMs, and argued that Anthropic is attractive because it is more focused than OpenAI and does not have the same balance-sheet strength as Google or Meta.
Home Depot also came under review after cutting full-year guidance and reporting only 0.2% same-store sales growth. Drew Reading said underlying demand was still roughly stable once weather effects were stripped out, but consumers are still delaying big-ticket projects, and the housing backdrop remains weak. He said Lowe’s is likely to report similarly cautious commentary on November 19.
Medtronic lifted the bottom end of its organic revenue growth outlook to 5.5% on strength in cardiac ablation, while Amer Sports raised guidance for the third time this year after record sales from Salomon and strong performance in greater China. The analysts portrayed both companies as benefiting from premium positioning, execution, and resilient demand despite tariffs and a cautious consumer.
Key takeaways
- The analyst said Microsoft and Nvidia are funding Anthropic while Anthropic commits $30 billion of Azure compute, underscoring how AI growth is being financed through cloud tie-ups.
- The analyst argued Anthropic is more focused than OpenAI and may have better gross margins because it is staying closer to the core LLM business.
- Drew Reading said Home Depot’s 0.2% same-store sales growth looked steadier underneath the weather noise, but big-ticket remodeling demand still has not returned.
- Reading expects Lowe’s to echo Home Depot’s cautious tone on November 19, with weak housing and cautious consumers still limiting discretionary spend.
- The medtech analyst said Medtronic’s cardiac ablation business grew 71% year over year and is driving a higher 5.5% organic growth outlook.
- The athleisure analyst said Amer Sports is benefiting from premium brands, with greater China up 47% despite earlier backlash concerns around Arcteryx.
Notable quotes
“Nvidia is committed to investing up to $10 billion in Anthropic. Microsoft is also committed to invest up to $5 billion in Anthropic”
“Anthropic for its side, it's committed to buy $30 billion of Azure compute capacity”
“Well, Anthropic is one of the five frontier LLMs that are remaining”
“the underlying business has been relatively stable with about a 1% comp”
“what you want to see is a resurgence in those big ticket categories”
How the episode opens
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Uh, Scarlet, Nvidia is committed to investing up to $10 billion in Anthropic. Microsoft is also committed to invest up to $5 billion in Anthropic. And Anthropic for its side, it's committed to buy $30 billion of Azure compute capacity.
Throwing out these tens of billions of dollars like it's nothing, right? I I don't I don't get it. It's just the circular stuff we see.
But people tell me not to worry. Uh, coming up right here, the best dressed man on Wall Street. His turban matches his tie every day.
No accident. I mean, nice job, Mandy Singh. He's a senior tech dude at Bloomberg Intelligence.
Mandep a lot of big companies making some big commitments in anthropic. What is Anthropic again? Well, Anthropic is one of the five frontier LLMs that are remaining.
I mean, and they are leading the charge when it comes to generative AI. So, it's one of the five. The other one are Google, Open AI, uh Meta, and XAI.
and and so uh look uh when it comes to these commitments, it's pretty obvious that Open AI has raised the bar by announcing they're going to spend 1.4 trillion. So the question is what are the other LLM companies going to do and Enthropic is also a pure play LLM and in their case they don't have the funding. I mean they don't have the balance sheet like Google or Meta have.
So they have to raise the money either in the private markets or from someone like Nvidia or uh get into an agreement with Microsoft which also uh has an agreement with OpenAI.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- anthropic investment
- ai competition
- homebuilding housing demand
- home depot earnings guidance
- medtech earnings outlook
Companies and tickers mentioned
- MSFT
- NVDA
- HD
- MDT
- AS
- Microsoft
- Nvidia
- Anthropic PBC
- OpenAI
- Home Depot
- Medtronic
- Amer Sports Inc.
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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