Joining us now. Amazon Web Services CEO Adam Selipski and Adam welcome to Bloomberg Technology. I want to start with some of the mechanics of this deal. Does Anthropic still pay Amazon to use AWS Cloud or is it structured such that the investment that you make in Anthropic is in the form of cash and credits for AWS Cloud.

Joining us now. Amazon Web Services CEO Adam Selipski and Adam welcome to Bloomberg Technology. I want to start with some of the mechanics of this deal. Does Anthropic still pay Amazon to use AWS Cloud or is it structured such that the investment that you make in Anthropic is in the form of cash and credits for AWS Cloud.

Good morning, Thanks for having me. We're very excited for this expanded relationship with Anthropic and the investment is a financial investment, as you say. And in addition, Anthropic will be training future versions of its models and running its models on AWS using our training chips and Inferentia chips. Those models will be guaranteed to be available for years to come in our Amazon Bedrock Managed service for llms, which provides the very wide choice of models, and AWS customers will actually receive early access to key features in Anthropics models in the future, such as fine tuning and customization of models. In addition, Anthropics are very talented technical teams and we anticipate working closely with them to actually improve future versions of our training in Inferentia at chips. So there are a lot of different benefits for our joint end customers. From this relationship and we're very excited to be leaders in this together.

Good morning, Thanks for having me. We're very excited for this expanded relationship with Anthropic and the investment is a financial investment, as you say. And in addition, Anthropic will be training future versions of its models and running its models on AWS using our training chips and Inferentia chips. Those models will be guaranteed to be available for years to come in our Amazon Bedrock Managed service for llms, which provides the very wide choice of models, and AWS customers will actually receive early access to key features in Anthropics models in the future, such as fine tuning and customization of models. In addition, Anthropics are very talented technical teams and we anticipate working closely with them to actually improve future versions of our training in Inferentia at chips. So there are a lot of different benefits for our joint end customers. From this relationship and we're very excited to be leaders in this together.

Adam, there's a lot of emphasis on moving a maker of foundation models at that scale once your proprietary silicon. How quickly will Anthropics start running AI workloads on trainium and Inferentia.

Adam, there's a lot of emphasis on moving a maker of foundation models at that scale once your proprietary silicon. How quickly will Anthropics start running AI workloads on trainium and Inferentia.

Well, we've been working with Anthropic, they've been a customers of ours since I think they're founding over a couple of years ago, and so they use a variety of different technologies for a variety of different workloads on AWS that they'll be using GPUs on AWS and will also be using large quantities of Trainingum and Inferentia. So I think everything's going to move very quickly and it'll all be a mix of technologies depending on their needs at the time.

Well, we've been working with Anthropic, they've been a customers of ours since I think they're founding over a couple of years ago, and so they use a variety of different technologies for a variety of different workloads on AWS that they'll be using GPUs on AWS and will also be using large quantities of Trainingum and Inferentia. So I think everything's going to move very quickly and it'll all be a mix of technologies depending on their needs at the time.

Adam, what's the mood like within Amazon and AWS this morning? There are lots of talented engineers that have been working on large language models generative AI tools internally, and now you're turning to a third party who's highly regarded as a leader in building foundation models.

Adam, what's the mood like within Amazon and AWS this morning? There are lots of talented engineers that have been working on large language models generative AI tools internally, and now you're turning to a third party who's highly regarded as a leader in building foundation models.

The mood here is great. We are a company of inventors who we love to build, and there's never been a better time to be a builder at AWS. Than right now. And as I mentioned before, a big part of our strategy in AI and generative AI specifically, it is all about customer choice and there's not going to be any one solution that were for all customers for all use cases. And Thropic has done an amazing job. They're clearly a leader in this space, and it's really important for customers that we continue to generate new capabilities together at the same time. Really one of the hallmarks of our Amazon Bedrock managed service for generative AI is choice, and so Amazon is going to continue to build its own Titan models which are going to be available later this year. Obviously Onthropics models are prominent in Bedrock, and we will have models from other leading providers as well as we have today. So it's still an amazing time to build here at Amazon. We think our models are going to be great as well, and it's about customers choosing the right tool for the job.

The mood here is great. We are a company of inventors who we love to build, and there's never been a better time to be a builder at AWS. Than right now. And as I mentioned before, a big part of our strategy in AI and generative AI specifically, it is all about customer choice and there's not going to be any one solution that were for all customers for all use cases. And Thropic has done an amazing job. They're clearly a leader in this space, and it's really important for customers that we continue to generate new capabilities together at the same time. Really one of the hallmarks of our Amazon Bedrock managed service for generative AI is choice, and so Amazon is going to continue to build its own Titan models which are going to be available later this year. Obviously Onthropics models are prominent in Bedrock, and we will have models from other leading providers as well as we have today. So it's still an amazing time to build here at Amazon. We think our models are going to be great as well, and it's about customers choosing the right tool for the job.

Talking about choice, and I just want to re welcome our TV and radio audiances with Adam Sleipski. What's so notable is that well Anthropic took a chunk of change one hundred million dollars worth from Google already. What interested as to how you feel that is perhaps a concern for you or not the relationship that anthropag already has with a previous cloud provider.

Talking about choice, and I just want to re welcome our TV and radio audiances with Adam Sleipski. What's so notable is that well Anthropic took a chunk of change one hundred million dollars worth from Google already. What interested as to how you feel that is perhaps a concern for you or not the relationship that anthropag already has with a previous cloud provider.

Now, we feel great about the relationship with Anthropic. It's been a good relationship, and I think today's announcement just makes it a deeper and longer term Anthropic will use AWS as its primary cloud provider for mission critical workloads, including building foundational foundation models and doing AI safety research, and will run the majority of its workloads on AWS. So we feel great about being able to provide the capacity and the expertise, and of course the security, the enterprise grade security that is so important to AWS customers. And we also feel great about working with Anthropic to make sure that our trainum and inferential technology, our chips are as cutting edge as possible going forward for years to come.

Now, we feel great about the relationship with Anthropic. It's been a good relationship, and I think today's announcement just makes it a deeper and longer term Anthropic will use AWS as its primary cloud provider for mission critical workloads, including building foundational foundation models and doing AI safety research, and will run the majority of its workloads on AWS. So we feel great about being able to provide the capacity and the expertise, and of course the security, the enterprise grade security that is so important to AWS customers. And we also feel great about working with Anthropic to make sure that our trainum and inferential technology, our chips are as cutting edge as possible going forward for years to come.

I'm interested in drilling down sort of what ED was going about the feeling internally right now, because I look at some of the analyst reaction to this. Adam and Webbush, for example, they say this signals a newfound urgency in Amazon's strategy to further integrate generative AI among your AW suite of services. That urgency was there a lack of understanding or indeed a reality that Amazon was behind the curve here a little bit when it came to the integration of generative AI. Because we've been looking at open Ai and Microsoft for a while now.

I'm interested in drilling down sort of what ED was going about the feeling internally right now, because I look at some of the analyst reaction to this. Adam and Webbush, for example, they say this signals a newfound urgency in Amazon's strategy to further integrate generative AI among your AW suite of services. That urgency was there a lack of understanding or indeed a reality that Amazon was behind the curve here a little bit when it came to the integration of generative AI. Because we've been looking at open Ai and Microsoft for a while now.

We've been saying for many, many months, Carolyn, that we are fully urgent. We have a strategy that we really love. It is different than some other cloud provider strategies. It's true we have a strategy of providing absolutely uncompromising security, which I don't think is true for our cloud providers. We have a strategy of providing customers the choices to use whatever's best for their job at hand. So and Tropic is going to be an amazing set of models for many, many use cases. And Amazon is fully invested in building its own Titan models, which I think will be really useful for other customers and other circumstances. And of course our other model provider partners through Bedrock. So I really think it's an ill founded premise that there's been some change in urgency. We're fully urgent here on generative AI for one reason and one reason alone. It's because our customers need us to have great generative AI capabilities. So many of them have their data platforms on AWS, and if you've got your data here, you really want to have your generative AI and all the powerful capabilities that you need from those capabilities in the same place. And so we have been are and will continue to be very motivated to deliver for customers.

We've been saying for many, many months, Carolyn, that we are fully urgent. We have a strategy that we really love. It is different than some other cloud provider strategies. It's true we have a strategy of providing absolutely uncompromising security, which I don't think is true for our cloud providers. We have a strategy of providing customers the choices to use whatever's best for their job at hand. So and Tropic is going to be an amazing set of models for many, many use cases. And Amazon is fully invested in building its own Titan models, which I think will be really useful for other customers and other circumstances. And of course our other model provider partners through Bedrock. So I really think it's an ill founded premise that there's been some change in urgency. We're fully urgent here on generative AI for one reason and one reason alone. It's because our customers need us to have great generative AI capabilities. So many of them have their data platforms on AWS, and if you've got your data here, you really want to have your generative AI and all the powerful capabilities that you need from those capabilities in the same place. And so we have been are and will continue to be very motivated to deliver for customers.

Adam, what does this mean for the kind of ramp up or path forward for trainingum and inferentia. You've put a lot of emphasis that anthrop it brings you a maker or creator foundation models at scale, we now need to ramp up I guess your third party manufacturing relationships to say, okay, let's get more trainium on more inferential online to support the workloads.

Adam, what does this mean for the kind of ramp up or path forward for trainingum and inferentia. You've put a lot of emphasis that anthrop it brings you a maker or creator foundation models at scale, we now need to ramp up I guess your third party manufacturing relationships to say, okay, let's get more trainium on more inferential online to support the workloads.

Well, it's absolutely true that there is a huge demand for all of the different ships with which people do a generative AI workloads. And so we absolutely have already been ramping up our training and inferential supply chain and ramping up the supply that we can create as quickly as possible. And yes, Andthropic will have access to very significant quantities of compute which will have trainum and inferentia in them. So yes, that's one of many reasons why we continue to ramp up and to provide a very robust AWS controlled supply chain for AI chips.

Well, it's absolutely true that there is a huge demand for all of the different ships with which people do a generative AI workloads. And so we absolutely have already been ramping up our training and inferential supply chain and ramping up the supply that we can create as quickly as possible. And yes, Andthropic will have access to very significant quantities of compute which will have trainum and inferentia in them. So yes, that's one of many reasons why we continue to ramp up and to provide a very robust AWS controlled supply chain for AI chips.

And is that where the revenue boost comes adam, because we're looking at the share price reaction is higher on the day. When does this all start to really drive adoption money on the bottom line for Amazon?

And is that where the revenue boost comes adam, because we're looking at the share price reaction is higher on the day. When does this all start to really drive adoption money on the bottom line for Amazon?

Well, I think that AI in general. Look, AWS has had machine learning services since at least twenty seventeen when we released our sage Maker machine learning service, which has over one hundred thousand AWS customers on it. So we've been doing machine learning for a long time inside of AWS, and obviously more recently have had a significant number of generative AI customers, and we will certainly continue to ramp up anticipate quite steeply. We have many sources of growth inside of AWS where a scaled and relatively sizable business at this point, and customers are running their data platforms on AWS. They are building out more and more applications for things like supply chain and contact center management on AWS. I've still a whole lot of storage and compute and database workloads ramping on our AWS, so we have many sources of growth I anticipate, but there's absolutely no doubt the generator of AI looks like it's going to be an explosive additional source of growth in the years ahead.

Well, I think that AI in general. Look, AWS has had machine learning services since at least twenty seventeen when we released our sage Maker machine learning service, which has over one hundred thousand AWS customers on it. So we've been doing machine learning for a long time inside of AWS, and obviously more recently have had a significant number of generative AI customers, and we will certainly continue to ramp up anticipate quite steeply. We have many sources of growth inside of AWS where a scaled and relatively sizable business at this point, and customers are running their data platforms on AWS. They are building out more and more applications for things like supply chain and contact center management on AWS. I've still a whole lot of storage and compute and database workloads ramping on our AWS, so we have many sources of growth I anticipate, but there's absolutely no doubt the generator of AI looks like it's going to be an explosive additional source of growth in the years ahead.

Adam, we put a lot of emphasis on the up to four billion dollars, and you know, I understand and thank you for explaining how the relationship will work in practice. If I put to you this is an example of Amazon or AWS basically paying a leader in the field of AI, handing over cash to allow to make them use TRAININGUM and inferentia, how would you respond to that and explain to me how you bring new customers on board who are really interested in the AI accelerators that you have built without having to invest in them as a sort of backup.

Adam, we put a lot of emphasis on the up to four billion dollars, and you know, I understand and thank you for explaining how the relationship will work in practice. If I put to you this is an example of Amazon or AWS basically paying a leader in the field of AI, handing over cash to allow to make them use TRAININGUM and inferentia, how would you respond to that and explain to me how you bring new customers on board who are really interested in the AI accelerators that you have built without having to invest in them as a sort of backup.

Sure. Well, the I think the really big news today is the new expanded relationship between and Propic and Amazon, in which they will have access to really large quantities of trainingmen chips. Customers will have access to those models, including early access to critical features through Amazon Bedrock, and Amazon will get to AWS. We'll get to work with Anthropic to ensure that, you know, we optimize our TRAININGM and inferential technology going forward. That's the benefit for customers. And yes, as part of this, we're pleased to be making an additional an initial investment of one point twenty five billion dollars into Anthropic. It's a financial investment and that could go up as high as four billion as you as you said over time, But it's really driven around customer value and what this is going to mean to customers who are very, very determined as they should be, to figure out generative AI strategies. We already are working in depth with customers, as is Anthropic on forming those strategies and actually moving to execution. We have a lot of great customers from Lonely Planet to Nexus, Lexus and a number of others who are actually moving production with generative AI on AWS and Anthropic, And in addition, as you alluded to, we'll be working with all of the partners that our customers want to do business with. If it's an important partner to our customers, it's going to be an important partner to us as well.

Sure. Well, the I think the really big news today is the new expanded relationship between and Propic and Amazon, in which they will have access to really large quantities of trainingmen chips. Customers will have access to those models, including early access to critical features through Amazon Bedrock, and Amazon will get to AWS. We'll get to work with Anthropic to ensure that, you know, we optimize our TRAININGM and inferential technology going forward. That's the benefit for customers. And yes, as part of this, we're pleased to be making an additional an initial investment of one point twenty five billion dollars into Anthropic. It's a financial investment and that could go up as high as four billion as you as you said over time, But it's really driven around customer value and what this is going to mean to customers who are very, very determined as they should be, to figure out generative AI strategies. We already are working in depth with customers, as is Anthropic on forming those strategies and actually moving to execution. We have a lot of great customers from Lonely Planet to Nexus, Lexus and a number of others who are actually moving production with generative AI on AWS and Anthropic, And in addition, as you alluded to, we'll be working with all of the partners that our customers want to do business with. If it's an important partner to our customers, it's going to be an important partner to us as well.

Amazon Web Services CEO Adam Sleipski, thank you.

Amazon Web Services CEO Adam Sleipski, thank you.