Good morning!

With Microsoft and Nvidia are shaking up the AI industry by committing up to $15 billion into Anthropic, while Anthropic in turn is locking in $30 billion of Azure compute capacity. For AI startups, this deal underscores two big trends: first, the deepening consolidation of power around a few elite AI players; second, the growing importance of cloud-compute and hardware partnerships in scaling up model development.

Also, in today's issue: