The discussion revolves around Amazon's recent investment in Anthropic, a company specializing in AI technology. The managing partner and co-founder of Deep Water Asset Management, Doug Clinton, discusses the implications of this investment. He suggests that Amazon is not trying to control Anthropic but rather to form a strategic partnership with a leading company in the AI market.
Clinton explains that Amazon sees itself as one of the top five companies in AI, alongside OpenAI, Google, Facebook with Llama, and Anthropic. He notes that Amazon is betting on its ability to maintain its position and continue to build leading AI products. However, he acknowledges that Anthropic already has other investments from companies like Google.
Clinton also touches on the potential impact of the Federal Reserve's warnings about upcoming rate hikes on the stock market and the tech sector. He suggests that the tech sector, including AI, may face a cap due to the current low interest rates.
Finally, Clinton mentions Google's upcoming launch of their AI model Gemini, which is said to be as good or better than OpenAI's core model. He believes that if Gemini lives up to expectations, Google could shift the narrative in the AI market and be considered a potential winner.
1. Amazon invested $4 billion for a minority stake in Anthropic, a company focused on AI.
2. AI investments are heating up the tech sector, which is weighing down the stock market.
3. The Federal Reserve has warned of more rate hikes to come.
4. Doug Clinton, managing partner and co-founder of Deep Water Asset Management, is being brought in for more discussion on this topic.
5. Amazon's investment in AI is compared to Microsoft's playbook.
6. Amazon sees itself a little behind in the AI adventure that Microsoft has been on, building Open AI's technology into products like Azure.
7. Amazon and Anthropic are planning to bring this to AWS customers.
8. Amazon is trying to compete directly with everything that Microsoft and Open AI have built so far.
9. From a foundational model of companies, there are five leading AI infrastructure companies: Open AI, Google, Facebook with Llama Anthropic, and Amazon.
10. Amazon is making a big bet that as one of the top five, it will be able to maintain that position and continue to build one of the leading AI products on the market.
11. Even though Anthropic already has other investments from companies like Google, Amazon will be able to control it at this point.
12. From Amazon's perspective, it's more about the partnership and less about control.
13. Amazon is wondering about how security is down the road.
14. Amazon is trying to figure out what regulators in the United States think about all of these things right now.
15. Amazon is worried that a partnership might be a questionable deal too.
16. It may be a six to nine month thing in terms of meaningful product and maybe starting to see some actual revenues from customers.
17. From an anticompetitive perspective, all these companies, the entire MAG 7 landscape is under a very fine microscope.
18. It's hard to see that the rally that we've had here to date continues with rates where they are.
19. Investors really need to look to specific stocks that have catalysts to try to outperform.
20. Talking about AI here, Google is one of those stocks within the MAG 7 category that does have a catalyst.
21. Google will be launching their new AI model Gemini sometime later this year.
22. Gemini is said to be as good or better than GPT-4, which is Open AI's core model.
23. I think Google has this reputation of also being behind Microsoft and Open AI, if Gemini is as good as people think it could be, that could shift the narrative and people might start looking at Google as a real player, maybe even the ultimate winner of the AI awards.
24. The AWS and the Anthropic deal with Amazon is more about making Amazon's products more intelligent, so your shopping experience will probably get much more intelligence from here.