Anthropic is said to have signed an enormous $1.8 billion cloud computing contract with Akamai Technologies amid the rapid increase in demand for its AI products.
As per reports, this long-term deal will allow Anthropic to gain access to more cloud computing capacity to run and scale up its AI solutions. This deal is indicative of how fast AI firms are ramping up their investments in data centers and cloud computing in line with the growing popularity of generative AI solutions around the world.
Previously, Akamai had disclosed in its earnings release that it had signed a significant cloud computing contract with a “frontier model provider,” but it did not reveal the identity of its customer. After this news was out, Akamai’s stock price surged by almost 25% in a single day and even higher the next day.
The stock was trading at around $149 as investors welcomed the news favorably. Nevertheless, neither Anthropic nor Akamai made an official comment regarding the supposed partnership.
Additionally, Akamai shared its revenue forecast for the second quarter, with expected earnings ranging from $1.08 billion to $1.10 billion. Although it was close to the analysts’ estimates, the competition had intensified in the cloud computing industry.
As stated by the CEO, Tom Leighton, the company is optimistic that it can acquire vital hardware, including CPU and GPU, despite rising costs due to the increasing demand for artificial intelligence technology.
The alliance follows a major computing partnership that Anthropic recently made with SpaceX. The agreement will enable Anthropic to leverage computing resources from SpaceX for its AI endeavors.
What makes the collaboration between the two firms even more interesting is the fact that SpaceX CEO Elon Musk has been criticizing Anthropic in the past. This partnership highlights the highly competitive nature of the AI industry as companies strive to acquire enough computing power.
