Amazon bets on Anthropic, Nvidia chip rush, Microsoft slows AI infrastructure

Pivot 5: 5 stories. 5 minutes a day. 5 days a week.

1. Anthropic Finalizing $3.5 Billion Funding Round Led by Amazon

AI startup Anthropic is close to securing a $3.5 billion funding round, primarily from Amazon, as it looks to compete with OpenAI and Google in the race for advanced AI models. The investment, part of Amazon’s $4 billion commitment to Anthropic, will strengthen the development of Claude, its AI assistant, and expand cloud infrastructure through AWS.

This move reflects the escalating competition among tech giants to control the future of AI, with major firms racing to secure exclusive partnerships with the most promising AI startups. If completed, the funding round would push Anthropic’s valuation to around $18 billion. As AI development costs soar, partnerships like this reinforce how critical cloud access and capital are in shaping the industry’s next leaders.

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2. Nvidia’s H20 AI Chip Demand Surges Amid US-China Tech Restrictions

Orders for Nvidia’s H20 AI chips have skyrocketed in China as companies scramble to secure supplies before stricter U.S. export controls take effect. The H20, a lower-powered version of Nvidia’s high-end GPUs, was designed to comply with current U.S. trade restrictions while still offering AI capabilities for Chinese tech firms. Demand has been so high that lead times have extended to months, signaling the urgency of Chinese companies to secure computing power for AI research.

This surge underscores how geopolitical tensions are reshaping global supply chains, with companies hedging against potential future restrictions. For Nvidia, it’s a balancing act—staying compliant with U.S. policies while maintaining its dominant position in the Chinese AI chip market.

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3. Microsoft Cancels AI Data Center Deals, Raising Oversupply Concerns

Microsoft has reportedly canceled multiple AI data center lease agreements, a move analysts interpret as a potential sign of oversupply concerns. While the company has been aggressively expanding its cloud and AI infrastructure, this decision suggests a reassessment of its AI investment strategy.

Some speculate that the rapid build-out of AI-focused data centers may have outpaced immediate demand, prompting Microsoft to curb spending. This development could signal a broader shift in the AI infrastructure arms race, where major players must carefully balance investment with real-world adoption. If AI workloads fail to grow as expected, similar pullbacks could follow across the industry.

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4. 1,000 Artists Release Silent Album to Protest AI Copyright Loopholes

A collective of 1,000 artists has released a silent album on streaming platforms as a protest against UK copyright proposals that could allow AI companies to train models on their work without compensation.

Titled The Sound of Silence?, the album is a symbolic move to highlight concerns over AI’s impact on creative industries. Listeners are encouraged to stream the album on repeat to generate royalties for affected artists. This protest underscores growing tensions between AI developers and the creative sector, as copyright laws struggle to keep pace with technological advancements.

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5. 1X Unveils NEO, a New Generation of Humanoid Robots

1X, a robotics startup backed by OpenAI, has unveiled NEO, a new generation of humanoid robots designed for real-world tasks. Unlike previous models, NEO is built for broader deployment, with enhanced dexterity, mobility, and AI-driven decision-making. The company envisions these robots assisting in logistics, healthcare, and home services.

With competitors like Tesla’s Optimus and Figure AI’s humanoid robots also advancing, the race to bring general-purpose robots into everyday life is accelerating. While promising, challenges remain—scaling production, affordability, and public acceptance of humanoid machines in workplaces and homes.

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