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Amazon cuts 14,000 corporate jobs

Amazon cuts 14,000 corporate jobs

Amazon said it will cut 14,000 corporate jobs as it restructures and looks to leverage AI to boost efficiency.

The move isn't surprising given many enterprises have said they aren't hiring and looking to AI to automate more jobs and processes.

Amazon CEO Andy Jassy has said the company wants to operate like a startup and continue to cut costs and improve margins. Jassy also noted that the company is looking to increase the ratio of individuals to managers. Amazon has 1.54 million total employees.

According to Amazon, the restructuring will make the company stronger by "further reducing bureaucracy, removing layers, and shifting resources to ensure we’re investing in our biggest bets and what matters most to our customers’ current and future needs."

The company said it will continue to hire more in some spaces while trimming other roles. The broader trend is that enterprises are looking at AI to take on more roles. These AI transformation efforts mostly revolve around augmenting human workers, but the outcome is that you simply need fewer people to run a company. See: 

Beth Galetti, SVP of People Experience and Technology at Amazon, said:

"This generation of AI is the most transformative technology we’ve seen since the Internet, and it's enabling companies to innovate much faster than ever before (in existing market segments and altogether new ones). We’re convicted that we need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business."

Perhaps the biggest takeaway is that Amazon isn't unique. JPMorgan Chase CFO Jeremy Barnum said on the company's most recent earnings call that the bank is being disciplined with expenses.

"We're going to have a very strong bias against having the reflective response to any given need to be to hire more people and feeling a little bit more confident on our ability to put that pressure on the organization because we know that even if we can't always measure it that precisely, there are definitely productivity tailwinds from AI," said Barnum. "You can assume that we're going to be pushing hard on all fronts to extract as much productivity out of the organization as possible."

Data to Decisions Future of Work amazon Chief Information Officer

Building an AI-Fluent Organization and the Rise of the AI Factory

Building an AI-Fluent Organization and the Rise of the AI Factory

Kristie Grinnell, SVP & CIO of TD Synnex, shares with Constellation Editor in Chief Larry Dignan how TD SYNNEX is building an “AI-fluent” organization, leveraging #AIagents to drive both revenue growth and productivity, and pioneering an “AI factory” to manage tech debt and boost agility across its global supply chain. 

Learn about their data strategy, value-driven approach to use cases, and how change management and employee empowerment are at the heart of their #AI journey.

00:00 - Meet Kristie Grinnell 
00:28 - TD Synnex’s AI Strategy & Vision 
02:14 - Driving Revenue Growth & Productivity with AI 
03:12 - Tackling Tech Debt: The AI Factory 
04:35 - Supply Chain Agility & Plug-and-Play Agents 
06:07 - Data Strategy & Building a Global Data Lake 
08:10 - Value-Driven Approach to AI Use Cases 
10:13 - Change Management & Employee Enablement

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Future of Staffing: How Siemens Leverages AI and Certinia

Future of Staffing: How Siemens Leverages AI and Certinia

Check out this Dreamforce interview with Siemens' Kurt Kuelz and Constellation Research’s R "Ray" Wang. Kuelz shares how Siemens is transforming global workforce management by leveraging AI-powered solutions from Certinia—driving strategic staffing, improving employee satisfaction, and moving toward true digital transformation.

Key takeaways:
? Automated staffing for the right resource at the right time
? Skills matching using advanced competency models
? Early warning and optimization with predictive analytics

Learn how Siemens is focusing on value realization—not just experimentation—bringing a win-win for both the business and employees.

Data to Decisions Digital Safety, Privacy & Cybersecurity Future of Work Innovation & Product-led Growth Marketing Transformation Matrix Commerce New C-Suite Next-Generation Customer Experience Tech Optimization Chief Analytics Officer Chief Customer Officer Chief Data Officer Chief Digital Officer Chief Executive Officer Chief Financial Officer Chief Information Officer Chief Information Security Officer Chief Marketing Officer Chief People Officer Chief Privacy Officer Chief Procurement Officer Chief Product Officer Chief Revenue Officer Chief Supply Chain Officer Chief Sustainability Officer Chief Technology Officer On <iframe width="560" height="315" src="https://www.youtube.com/embed/dn43WjSQpoY?si=5Gtq3nHvfRTq2hze" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>

Celebrating 15 Years of Constellation Connected Enterprise (CCE)

Celebrating 15 Years of Constellation Connected Enterprise (CCE)

🎉 Celebrating 15 Years of Constellation Connected Enterprise (CCE) 💫 

What an incredible journey our founder & CEO, R "Ray" Wang, began 15 years ago with CCE! To celebrate, we brought together voices from across the Constellation community—clients, partners, friends, and alumni—to share their appreciation for over a decade of innovation, insight, and connection that culminates every year in Half Moon Bay.

This milestone is more than just a number. It’s about the family we’ve built, the bold questions we’ve asked, and the impact we’ve made together. From lifelong friendships to industry-shaping ideas, CCE remains a gathering place for thought leaders, disruptors, and visionaries.

A heartfelt thank you to everyone who shared their appreciation (listed in order of appearance):

Kenny Lauer, Meyer Sounds
Byron Reese, scissortail.AI
Cindy Zhou, KnowBe4
Jonathan Becher, San Jose Sharks
Loni Stark, Adobe
Vala Afshar, Salesforce
Brent Leary, CRM Essentials
Tracey Cesen, ForeverHuman.AI
Andrea Chin, ForeverHuman.AI
Indy Cho, Costco
Adam Gunther, Equifax
Kate Carruthers (FGIA, MAICD)
Steve Lucas, Boomi
John Nosta, NostaLab
Lara Druyan, Venture Partner
Sandra Lo, Zoho
Ravi Kumar S, Cognizant
Andrew Nebus, ASRC Federal
Gurvinder Singh Sahni, Altimetrik
Heather Clancy, Trellis Group
Andy Weinstein, GODOT
Paul Greenberg, The 56 Group
Dr. Janice Presser, Teaming Science
Jonathan Feldman, Wake County
Tricia Wang, Advanced AI Society
Joseph Hughes, EY
Rohit Gupta, Auditoria.AI
David Bray, PhD, The Stinson Center
Aiaz Kazi, rtZen.AI
Soon Yu, Author, Pdocaster
Alan Lepofsky, Netomi
Jon Reed, Diginomica
The Constellation Research analyst, sales, and marketing teams!

Your reflections, memories, and enthusiasm make CCE truly special. Here’s to many more years of collaboration, inspiration, and "right kind of trouble"! 👏

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Qualcomm outlines AI accelerators, eyes inferencing

Qualcomm outlines AI accelerators, eyes inferencing

Qualcomm is entering the AI accelerator market with a focus on inferencing in a move that will give enterprises more options beyond Nvidia, AMD and custom hyperscale cloud processors.

The company, which has been eyeing data center workloads, launched the Qualcomm AI200 and AI250 AI accelerators with what it calls "industry-leading total cost of ownership (TCO)."

Qualcomm also said its AI chips will be compatible with AI frameworks, software and offer a new memory architecture designed for AI workloads. Qualcomm said it will have an annual cadence for its AI inference roadmap.

According to Qualcomm, it will offer its AI200 and AI250 accelerator cards and racks. The effort builds off its neural processing unit (NPU) products and aims to deliver high performance per dollar watt metrics.  Humain, a Saudi Arabia AI company, will be the first customer of Qualcomm's AI accelerators. The companies will integrate Humain's AI Allam models with Qualcomm's platform.

The AI200 and AI250 will be commercially available in 2026 and 2027.

Holger Mueller, an analyst at Constellation Research, said:

"Qualcomm has proven its expertise in chip performance over and over, more recently with the launch of its new Snapdragon series - and it certainly has a right to play in the up and coming AI inference marketg. Good to see the partnerhship with Humain, but breaking into the cloud data center is (very) hard - as we have seen from Dell, HPE and before the Microsoft partnership - for Nvidia."

Here's a look at the key points:

  • Qualcomm AI200 is optimized for model performance, inference and AI workloads. The rack system supports 768 GB of LPDDR per card for higher memory capacity and lower cost.
  • Qualcomm AI250 features a memory architecture based on near-memory computing and can deliver 10x higher effective memory bandwidth ad lower power consumption. Qualcomm said it is pushing toward disaggregated AI inferencing.
  • Both racks have direct liquid cooling, PCIe, Ethernet and confidential computing.
  • Rack-level power consumption is 160 kw.
  • The stack supports leading machine learning frameworks, inference engines, generative AI frameworks, and LLM / LMM inference optimization techniques like disaggregated serving.
  • The systems provide seamless model onboarding and one-click deployment of Hugging Face models via Qualcomm Technologies’ Efficient Transformers Library and Qualcomm AI Inference Suite.

More:

Data to Decisions Tech Optimization Chief Information Officer

OpenAI, Anthropic increasingly diverge as strategies evolve

OpenAI, Anthropic increasingly diverge as strategies evolve

OpenAI and Anthropic have historically been mentioned together. After all, OpenAI's ChatGPT and Anthropic's Claude are among the most popular large language models (LLMs).

In recent weeks, the companies have diverged on multiple fronts. Simply put, OpenAI is a mostly consumer play with a case of Google and Apple envy. Anthropic is enterprise and Claude is an engine for work.

OpenAI is betting big on building its infrastructure and will use hyperscalers to add capacity. Anthropic leverages AWS and Google Cloud.

There’s also an argument to be made that Anthropic has a better business model.

Let's compare and contrast.

OpenAI

The company is pushing into not safe for work content. Yes, ChatGPT will be naughty.

Anthropic

My bet is that Anthropic just has a cleaner and more focused business model. Maybe OpenAI disrupts Google and Apple at some point, but a lot has to go right. The big question is whether OpenAI is too big to fail since it is clearly the linchpin in the AI economy.

Data to Decisions Future of Work Innovation & Product-led Growth Chief Information Officer

CCE 2025: AI agents: Dreams, reality and what's next

CCE 2025: AI agents: Dreams, reality and what's next

Enterprises chasing agentic AI are likely to run into a reality check, but there's considerable upside ahead if they can navigate the moving parts.

At Constellation Research's Connected Enterprise 2025, CxOs discussed the current state of play for AI agents, the reality and what's ahead.

The week in CCE 2025:

Here’s a look at the AI agent game from CxOs.

The dream

Pick through the hype of agentic AI and the various vendor pitches and the dream revolves around autonomous enterprises that simply flow. They're living, breathing businesses that aren't siloed and can evolve, react and get things done unsupervised.

Salesforce evangelist Vala Afshar is working on a book about becoming autonomous. At Constellation Research Connected Enterprise, Afshar said:

"Autonomous machines will have not just situational awareness, but horizontal awareness, marketing, sales, commerce, every department, once you become an agent, enterprise, will eventually create that anticipatory muscle you have where one signal can really activate your business to have beyond situational awareness. When you become autonomous, you resemble living organisms. All living organisms are flow based."

Business flow comes from culture, roadmaps, customer engagement and ecosystems. "Be mindful of flows in and out of your business," said Afshar.

The working theory is that AI agents and the orchestration platforms will keep these flows going. Ultimately, enterprises will use agentic AI as a circulatory system for processes and business operations.

The reality

If there was one takeaway from Connected Enterprise 2025 it's that the reality behind AI agents is vastly different than the dream.

Simply put, we're not there yet but may be in a year. CxOs don't have a comprehensive strategy, are lining up data to be AI friendly, overwhelmed with platforms and in many respects would prefer to build systems that recapture the funds that go to SaaS vendors.

Platform fatigue is setting in.

Fiona Tan, CTO of Wayfair, said the platform pitch from SaaS is something enterprise customers need to be wary about. She said:

"We're looking for a horizontal platform partner that we can work with. Some of those integrations we will do directly, and then some of them we will look for with SaaS partners. The difficulty right now with SaaS is that they're also trying to go horizontal. We want to access enhanced capabilities of each of the SaaS partners, but control it. We may not want that necessarily."

The AI agent strategy conversations are happening. Are they fully baked? No. They're getting there.

AI agents need a manager

Boomi CEO Steve Lucas said that orchestration is going to be more important than creating AI agents. Like human workers, oversight will be critical.

Dr. Janice Presser, Founder of Teamingscience.com, said deploying AI agents needs the same thought behind it as hiring a human.

"Whether you're hiring a human being or a carbon based life form or silicon based life form, you need to kind of narrow down how you want them to be and what you want," said Presser.

Presser noted the following:

  • AI agents will team with humans.
  • Both types of workers will need to be managed differently. "Agents are for work. Humans are for love," said Presser.
  • You'll need to pick the right tasks for agents just like you would for human employees.
  • Since you're building a team you will need AI agents that complement each other and act in different ways. You can empower AI agents to act like a human with creativity or simply handle tasks.

"At the end of the day, you have to have these agents talking to each other and coordinating. There's no getting away from that," said Babak Hodjat, CTO of AI at Cognizant.

The journey is exhausting

The rate of change for AI is exhausting and there's so much flux CxOs are wary about making any big bets on platforms as well as models. Flexibility is the key word.

Not surprisingly, build vs. buy was a key debate. The consensus among the Constellation Research community was more in the build camp. Ultimately, enterprises are going to do both build vs. buy.

In other words, there's no easy button for AI agents and unless you have your data house in order it's hard to chase the dream.

An industry like banking, financial services and insurance is regulated can scale into AI agents because it has historically leveraged data for competitive advantage.

"This is a perfect opportunity for a huge amount of automation, which we can then augment with a human in the loop," said Sudhir Jha, Founder & CEO of Golconda AI. "Instead of trying to solve one particular problem, think about the entire flow and how to make the entire process more efficient using AI agents."

What's next?

AI agents are going to create multiple challenges beyond the technology issues. Here's a look.

  • Leadership challenges. Patrick Naef, Managing Partner Boyden Global Executive Search, said there will be leadership challenge due to AI. "We've trained over the last decade to move away from hierarchical cost designs to empower people, sharing missions, strategies, cultural goals, and then the people decide what to do," said Naef. "Will that work with AI or do we need to redefine hierarchical structures and still empower people. That's quite a challenge. The interesting thing is how we're going to talk about passion when centralizing that one process and workflow."
  • Develop a high-level strategy. CxOs repeatedly argued that the AI agent movement can result in a sprawl of vendors, platforms and digital workers.
  • Think organization. Corregan Brown, Director of Engineering, CTS Restaurant Experience at Chick-fil-A, said AI agents and the future of work will revamp organizational structures. "Organization is going to go from caterpillar to butterfly. There will be some major org that was structured in some way that made sense to us, and it's going to come out incomprehensibly different next year," said Brown.
  • Work on the building blocks that can enable AI agents. There will need to be platforms, orchestration tools, AI agent builders and data strategy. Enterprises are in various stages with those efforts.
  • Realize that you may be overthinking the AI agent play. On an HCM panel, Constellation Research analyst Holger Mueller said AI agents won't be on the org chart and shouldn't be. He said: "My view is that agents are just machines. Agents are run by hardware and software. They're just machines.”

More:

 

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AWS delivers outage post mortem: When automation bites back

AWS delivers outage post mortem: When automation bites back

Amazon Web Services delivered a detailed post mortem on its widespread outage this week and perhaps the biggest takeaway is that automation can go wrong.

On Monday, many websites and apps were down or severely hampered over a DynamoDB bug that resulted in multiple connection failures across AWS. Simply put, automation caused the outage and made it harder to recover. Typically, automation is what keeps AWS' complex system running.

The lessons here are likely to be valuable given the tech sector is bullish on the promise of AI agents, which will presumably make decisions autonomously and continually optimize processes. What happens when these automations wind up amplifying issues when they go bad?

According to AWS, the root cause of the outage was the cloud provider's automated DNS management system for DynamoDB. AWS has a system called DNS Planner and Enactor to automatically publish DNS records for internal and external endpoints.

A "race condition" in the automation caused the system to write an empty or incorrect DNS record for DynamoDB's main endpoint in the US-East-1 region. The system that was supposed to notice the issue didn't trigger due to the same automation logic.

DynamoDB then went down for the count. The outage brought down multiple services including AWS Lambda, CloudFormation and EC2. Load balancers designed to automatically replace faulty EC2 instances failed. More automation made load issues worse. Simply put, self-healing did just the opposite.

AWS was forced to stop automation jobs to recover. Automation typically keeps AWS running seamlessly, but in this case it scaled problems because the underlying logic was wrong.

For now, AWS has disabled the DNS Planner and Enactor automation until it adds safeguards. AWS is also adding rate limiters to prevent automated systems from changing too much too fast and building in manual reviews. EC2 will get an additional test suite to augment AWS' existing scale testing. 

Lessons learned:

  • Start planning for what happens if automation goes bad.
  • Design for redundancy.
  • Think through automation resiliency.
  • AWS outage may wind up being just the first time we notice the downside of automation.
Tech Optimization Chief Information Officer

CCE 2025: What the CxOs are saying about CX, AI, process

CCE 2025: What the CxOs are saying about CX, AI, process

Agentic AI will alter processes, customer experience flows and enterprise structures.

Those are some of the conclusions from the buy side. Here are some of the takeaways from CxOs speaking at Constellation Research's Connected Enterprise 2025.

More from CCE 2025:

Customer Experience

Ashley Hart, Chief Marketing Officer at Intellect, leads go-to-market strategy and brand transformation for the company's AI-powered Quality Management Systems platform. She said customer journeys have to be efficient but also include content so they can manage through adversity. Hart said:

"When I think about 2026 it's about being able to provide the right customer journey and then being able to bring them through that kind of funnel. How do I make sure that I'm getting the right content and right experience?

"Everything we've been in tech has been about becoming more efficient. Our big industry is manufacturing and everything is being impacted by tariffs. So if they're going to invest in this technology, then they have to be able to understand it well now."

Keri Dawson is the Global Head of Designit, an award-winning experience innovation company that helps organizations build competitive advantage and deliver positive change through strategy, design, marketing, and technology. Dawson said:

"Brands have an opportunity to pivot on human experience, customer experience, employee experience, product experience, service experience. If we start thinking through the lens of human experience we understand the interaction between the employee and the customer and the products and the service. We then drive towards a decomposition of that experience that becomes less technical and more humanistic. We talk about journeys, buyer personas and customer personas, but the reality is the persona is misleading because it also has to do with mindset. It has to do with context, it has to do with motivation, it has to do with emotion, and it has to do with empathy. Increasingly, customers want empathy in their experience."

Leadership

Ash Rangan, CEO of DoubleCheck Solutions, is a rare executive that has made the jump from CIO to CEO. He recapped the transition.

"Of all the transformations, there are two major transitions I think of. One is my own and going from being the guy who was managing technology to being the guy managing the business.

We can't manufacture time. So I keep pushing on people saying I need more, faster, better all the time. And that's new behavior for me. That transition is hard. The other transition is for my team. They are going through a cultural shift because the technology environment is transitioning so fast. It's like I'm constantly behind already, and that's pressure, not only to run the business, keep up as much as possible, and push the art of possible.

You may be good, you may actually be brilliant, but you have to keep up, and that's hard."

Organization and AI

Corregan Brown, Director of Engineering, CTS Restaurant Experience at Chick-fil-A, said:

"Organizational history is all about expanding the power of what you can do. If we look at it, we've been increasing these layers of abstraction with process, with more advanced technologies and so on. And I think that with AI agents, we're going to see the same thing. Agents are going to come in on the ground floor, and they're going to replace a lot of entry level tasks. But what is also going to happen is your first level humans are going to start to think more like managers.

A software engineer has to change a little bit with more managerial skill, more procedural thinking and abstraction, and a little bit more organizational psychology."

Manish Gupta, CIO and Managing Director at Nagarro, said:

"AI companies have abandoned legacy organizations. What we need now is the fusion of CIO, CMO, CTO, to drive this technology. Because the biggest problem right now is the innovation cycle. It's quicker than one cycle, so you can be really flexible, and gaps, you need people with that experience to understand the organization."

AI agents and process

Andrew Nebus, Senior Director, Defense Programs at ASRC Federal, said:

"We've always dealt with process improvements and technology in the instance. Now agents allow us to do more things that we can't scale easily. As that happens it forces us to really focus on the person, culture, and who we want to be in the room."

Kristina Chambers, Chief Data and Analytics Officer at TTX Company, said:

"We're fundamentally saying, replace the business process. Do we understand that process? What do you need to successfully achieve that process? It's also important to think about the maturity, the success or failure or accuracy of the existing environment. We all expect computers to be 100%. What's tolerable? If it's 95% you'll take the 5% hit because the speed of AI will be much faster.

I think one challenge most enterprises face right now is that as you're starting to incorporate a lot of these copilots in your daily work, and the context at different levels varies significantly, and that that increases or decreases the quality of the output that you're getting. I could put together a prompt and get a really nice summary of a large scale project that was completed over three years, and it will provide very accurate with thorough responses. Someone else in my team is not going to have access to the same level of information and so the context will be very different.“

Indy Cho, VP Analytics and Data Products at Costco, said:

"Understanding the demand at a localized level is an incredibly challenging task. Every time you shop that's a demand signal. We get that back to buyers, and we they go through a tremendous amount of analysis to figure out how much product needs to get to the right location.

The bar for a higher level of accuracy is absolutely necessary but that doesn't mean we don't stop experimenting."

Innovation and AI

Judy Yee, Director of Marketing Innovation, at The Clorox Company, said AI is speeding up the innovation cycle.

"AI is a partner in our discovery journey. We're able to shave off two-thirds of the innovation cycle and get faster with better predictability and base decisions on more signals.

We can get a signal within minutes and shaves time. We're then able to ideate within the AI platform and come an idea and its articulation. An idea can become a concept that's developed and tested in real time with both live consumers and AI.

Right now we have a patchwork of tools, but we'll get to an entire enterprise platform where you go from trends to a prototype to flight on one system."

Data to Decisions Future of Work Innovation & Product-led Growth Next-Generation Customer Experience Tech Optimization Digital Safety, Privacy & Cybersecurity ML Machine Learning LLMs Agentic AI Generative AI Robotics AI Analytics Automation Quantum Computing Cloud Digital Transformation Disruptive Technology Enterprise IT Enterprise Acceleration Enterprise Software Next Gen Apps IoT Blockchain Leadership VR Chief Executive Officer Chief Financial Officer Chief Information Officer Chief Technology Officer Chief AI Officer Chief Data Officer Chief Analytics Officer Chief Information Security Officer Chief Product Officer

Anthropic to use Google Cloud TPUs as it diversifies capacity

Anthropic to use Google Cloud TPUs as it diversifies capacity

Anthropic said it will expand its use of Google Cloud's TPU chips t train its Claude models and meet demand for its services.

The expansion of the deal highlights how Anthropic is diversifying its infrastructure usage from Amazon Web Services. Anthropic and Google Cloud have been partners since 2023. That initial Google Cloud partnership gave Anthropic distribution through Vertex AI and Google Cloud Marketplace. Both AWS and Google are investors in Anthropic.

According to the companies, the expanded Google Cloud and Anthropic partnership will give the LLM provider access to more of a gigawatt of capacity coming online in 2026.

Anthropic said in a blog post:

"Anthropic’s unique compute strategy focuses on a diversified approach that efficiently uses three chip platforms–Google’s TPUs, Amazon’s Trainium, and NVIDIA’s GPUs. This multi-platform approach ensures we can continue advancing Claude's capabilities while maintaining strong partnerships across the industry. We remain committed to our partnership with Amazon, our primary training partner and cloud provider, and continue to work with the company on Project Rainier, a massive compute cluster with hundreds of thousands of AI chips across multiple U.S. data centers."

In a statement, Anthropic said will have access to 1 million TPU chips and other Google Cloud services. Anthropic said the Google Cloud TPUs will give it efficiency gains with strong price performance.

For Google Cloud, the Anthropic win is significant. Google Cloud is also providing capacity to OpenAI. Google Cloud CEO Thomas Kurian said, "we are continuing to innovate and drive further efficiencies and increased capacity of our TPUs."

Constellation Research analyst Holger Mueller said:

"This is a big win for Anthropic and an even bigger one for Google Cloud. Anthropic continues its compute diversification, which is wise as it avoids Nvidia shortages and prices and gets access to the most efficient AI platform. Google can show that TPUs are not 'just' for Google workloads. And it's a win for customers since the deal allows Anthropic to be more cost competitive. Google can create further economies of scale for TPUs."

Data to Decisions Tech Optimization Chief Information Officer