Bloomberg Intelligence Podcast: "Microsoft, Nvidia to Invest Up to $15 Billion in Anthropic"
Date: November 18, 2025
Hosts: Scarlett Fu & Paul Sweeney
Episode Overview
This episode of the Bloomberg Intelligence Podcast dives deep into the recent news that Microsoft and Nvidia are making substantial investments―up to $5 billion and $10 billion respectively―in the AI startup Anthropic. Senior tech analyst Mandeep Singh joins to provide insight into what these deals mean for the AI industry, for Anthropic’s future, and for the shifting strategies of Big Tech. The episode then transitions to segments on Home Depot’s earnings and the home renovation market, Medtronic’s growth driven by new medical technologies, and a look at Amer Sports’ thriving premium sports brands.
Main Segment: AI Investment Race – Microsoft & Nvidia Bet Big on Anthropic
The AI Funding Boom (Starts at 01:54)
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Microsoft and Nvidia Investment Highlights:
- Nvidia pledges up to $10 billion and Microsoft up to $5 billion in Anthropic, an AI company focused on “frontier models” akin to OpenAI.
- Anthropic, in return, commits to buying $30 billion worth of cloud compute from Azure.
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Circular Business Relationships:
- Hosts note the dizzying sums involved and how investments and service commitments create tight interdependencies among cloud and AI giants.
- Quote, Co-host (02:12): “We're just throwing out these tens of billions of dollars like it's nothing, right?”
Who (and What) Is Anthropic? (Starts at 02:39)
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Background on Anthropic:
- Founded by ex-OpenAI employees.
- One of the five “frontier model” AI lab survivors. Others: Google, OpenAI, Meta, XAI.
- Investors include Alphabet and Amazon, with Microsoft now joining.
- Mandeep Singh (02:39): "Anthropic is one of the Five frontier alums that are remaining, I mean, and they are leading the charge when it comes to generative AI."
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Why the Big Numbers?
- AI companies require massive computational resources (“GPU compute”) to train and operate large language models (LLMs).
- Unlike Google or Meta, Anthropic doesn't have a huge balance sheet, so it leverages cloud and silicon partners for both capital and infrastructure.
- Mandeep Singh (03:20): "LLMs need compute. That's how you serve billion plus users. And that's where you know, the numbers get bigger and bigger when it comes to the tie ups with cloud providers."
Meta’s Standalone Approach (04:13)
- Meta's Different Path:
- Runs its own LLMs, but uses GPU compute for its internal “family of apps” only—no external cloud customers.
- Lack of cloud business may hurt ROI compared to Microsoft, which now gets $30 billion in Azure commitments from Anthropic.
- Mandeep Singh (04:37): "In the Case of Microsoft, you don't have that with a meta. How are you generating ROI outside of your family of apps?”
Will the AI Labs Go Public? (05:25)
- IPO Prospects:
- Anthropic seen as more focused, with better gross margins than OpenAI (which is engaging in a diversity of initiatives and risking overreach).
- OpenAI’s risk: trying to do too many things could lead to strategic missteps.
- Mandeep Singh (05:31): “Their gross margins at this point are probably better than OpenAI, which is doing too many things...biggest risk I see for OpenAI is they feel they can get into any business...and that’s where there’s a possibility of a misstep.”
Anthropic’s Structure & Growth (06:10)
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Corporate Structure:
- Based in Silicon Valley; not incorporated offshore.
- Nonprofit origin, but now more commercial (“profitable PBC” possible).
- Mandeep Singh (06:12): "Silicon Valley...It's a nonprofit looking to have a profitable PBC and so all that could happen."
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Why Microsoft Is Diversifying:
- After its exclusive relationship with OpenAI, Microsoft is hedging by also investing in Anthropic.
- LLMs/AI capabilities are progressing rapidly, driving constant corporate realignments.
- Mandeep Singh (06:26): “At the end of the day, these LLMs are showing constant improvement which is what's driving, you know, companies like Microsoft to partner with Anthropic.”
Additional Segments: Markets & Companies in Focus
Home Improvement Retail: Home Depot & Lowe’s (09:49)
Home Depot Earnings and Consumer Trends (10:29)
- Home Depot same-store sales: Slight miss versus consensus; underlying business remains stable.
- Demand Weakness:
- Larger projects are deferred; small “maintenance” projects drive business.
- Drew Redding (11:31): "It's smaller ticket projects, maintenance oriented type stuff, which is a huge part of their business."
Comparison to Lowe’s (12:19)
- Relative Performance:
- Lowe’s has more exposure to DIY market vs. Home Depot’s strong “pro” segment.
- Both are cautious as consumer confidence and discretionary spending dip with economic uncertainty.
Tariffs & Costs (13:28)
- Tariffs:
- Not a major issue yet, but rising importance with new policies on wood and cabinetry.
- Drew Redding (13:36): "They're able to offset...tariff costs with [premium positioning]...but it's something to keep an eye on."
Link to Housing Market (14:30)
- Stagnant Housing Market:
- Home turnover down; fewer people moving hurts big renovation spend.
- Home prices slowing or declining in key markets may erode consumer confidence.
- Drew Redding (15:04): “Housing is extremely important to Home Depot and Lowe's...Movers tend to spend a lot more than people who are already in their house...If you think the value of your property is falling, you're less inclined to invest.”
MedTech: Medtronic’s Growth Story (19:18)
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Strong Financials:
- Medtronic raised guidance: organic revenue up 5.5%.
- Cardiac ablation tech (pulse field ablation) saw 71% YoY segment growth.
- Competing mainly with Boston Scientific.
- Matt Hendrickson (21:10): "This is new technology...treat atrial fibrillation. That segment alone grew 71% year over year."
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Industry Context:
- Minimal tariff or import disruption; most devices built and used in the US.
- Activist investor Elliott’s friendly involvement credited with helping to push management for more discipline and growth.
Premium Athleisure: Amer Sports (27:53)
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Brands:
- Arc’teryx (focus DTC), Salomon (focus wholesale), Wilson all performing strongly.
- Abigail Good Martin (28:55): "Sales up 30%. Broad based strength across regions, across channels and across brands."
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China Success Despite Environmental PR Crisis:
- Recent fireworks incident in Himalayas was a risk, but China sales were up 47%.
- Premium positioning allows Amer to raise prices and offset tariff costs.
- Expanding store footprint for direct sales, especially for Arc’teryx.
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Competitors & Consumer Trends:
- Nike maintains dominance, remains top choice for Millennials and Gen Z.
- Other brands (Hoka, On) growing but still niche and coastal.
- On Skechers, Abigail Good Martin (34:13): "No, they're [Skechers] the third largest footwear brand globally...right behind Adidas."
Notable Quotes & Timestamps
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On the scale of the AI investment:
- Co-host (02:12): “We're just throwing out these tens of billions of dollars like it's nothing, right?”
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On the AI ‘in-crowd’:
- Co-host (03:46): "This is like the popular clique in high school where everyone knows each other and everyone's messing around with each other."
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On the differences between Anthropic and OpenAI:
- Mandeep Singh (05:31): “Their gross margins at this point are probably better than OpenAI, which is doing too many things...there’s a possibility of a misstep.”
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On Home Depot customer behavior:
- Drew Redding (11:31): “It's smaller ticket projects, maintenance oriented type stuff, which is a huge part of their business.”
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On Amer Sports and China risk:
- Abigail Good Martin (29:27): "Arc’teryx [set off fireworks]...definitely a misstep for an outdoor brand that's really focused on sustainability...But Greater China was up 47%. Momentum is continuing into 4Q."
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Skechers' surprise position:
- Abigail Good Martin (34:13): "No, they're the third largest footwear brand globally...right behind Adidas."
Key Takeaways
- Big Tech is racing to lock down the best AI talent, models, and partnerships. The sums committed are enormous and the investments are often entwined with cloud consumption deals.
- Microsoft and Nvidia’s investments in Anthropic are both competitive plays and strategic hedges as the AI revolution accelerates.
- AI labs without massive balance sheets (e.g. Anthropic) need deep-pocketed partners, but focus is seen as a strength compared to scattershot expansion (as with OpenAI).
- Elsewhere in the episode, consumer belt-tightening is visible in small project demand at home improvement retailers, but premium global brands (sportswear, medtech) are proving resilient and even thriving where they can demonstrate differentiated value.