Meta Cuts Anthropic AI Spending, Shifts to Internal Tools

According to The New York Times, Meta had expected to spend about $10 billion on Anthropic's AI services this year as of April. As external AI service prices rose, Meta ended its internal 'tokenmaxxing' competition, shifted more AI needs to internal tools, and cut its full-year AI spending guidance to 'billions of dollars' in June.

Meta is one of Anthropic's main customers, and the two are also rivals. Meta previously used Anthropic's AI in internal tests of its Hatch agent platform, but the official version will be powered by Meta's own models. Reducing use of Anthropic's services will lower the latter's annual revenue, posing a headwind to its IPO plans.