Tech
map of big tech undersea cables
(Sherwood News)

Big Tech’s most important infrastructure is at the bottom of the sea

While data centers on land are getting all the attention, Big Tech’s vast network of undersea fiber-optic cables carry 99% of all international network traffic.

This week, Amazon announced plans for “Fastnet,” a new undersea transatlantic fiber-optic cable running from Maryland to County Cork, Ireland. The new, high-capacity cable will carry Amazon Web Services data at a rate of over 320 terabits per second — which Amazon says is enough to transmit “the entire digitized Library of Congress three times every second” or stream “12.5 million HD films simultaneously.”

Amazon’s latest cable joins a crowded sea of submarine pathways linking Big Tech’s data centers and customers around the world.

While massive data centers on land are the focus of the industry right now, and space-based internet is scaling up, undersea fiber is still the most crucial part of tech companies’ infrastructure for global computing today, as they handle 99% of all international network traffic.

Let’s take a look at the size and reach of tech’s biggest companies.

Amazon

While AWS offers 120 Availability Zones in 38 geographic regions, it actually has the fewest number of miles of fiber-optic undersea cable of its Big Tech peers, according to data from TeleGeography.

Amazon cables
Data: TeleGeography

Including Fastnet’s approximately 5,500 kilometers of cable, Amazon has invested in projects covering about 30,000 kilometers of fiber, most of which are still in development. But the company says if you count up terrestrial and subsea fiber, its network uses over 9 million kilometers.

It also uses the JUPITER consortium’s 14,500-kilometer transpacific cable, along with Meta, which entered service in 2020.

Microsoft

Microsoft shares the 6,600-kilometer MAREA transatlantic cable with Meta and Spanish telecom company Telxius, which entered service in 2018. MAREA was hailed as the first “Open Cable System” in the world — allowing the connection at landing stations to be used with any company’s networking equipment, rather than one system for the entire cable from one vendor. It also allows for updates that improve the speed of the connection without having to lay new cable.

microsoft cables
Data: TeleGeography

Highlighting the unique risks that come with a fire hose of data just lying on the seabed, in September, Microsoft’s Azure cloud service was disrupted in Asia and Europe when some of its undersea cables were cut in the Red Sea.

Meta

Not content to have only the world’s largest data center, Meta also wants to have the longest undersea cable. Announced in February, Project Waterworth consists of 50,000 kilometers of cable that will span five continents. Meta says that the Waterworth cables will use a “first-of-its-kind” routing allowing for deep-water placement — up to 7,000 meters — and “enhanced burial techniques” in shallow waters to prevent damage from ships and anchors.

meta cables
Data: TeleGeography

Meta was also a key partner in the massive 45,000-kilometer 2Africa Pearls cable project, which wraps around Africa, connecting it to Europe and Asia.

Google

Google leads the pack in Big Tech for the most extensive undersea fiber network. It has access to about 267,000 kilometers of cable in the 33 projects it has invested in.

google cables map
Data: TeleGeography

Google’s early work to build a global web search network brought the company to seek undersea fiber capacity early. Google has been investing in undersea cable consortiums since the 2010s, and in 2018 it started to build its own private cable projects:

  • “Dunant” - A 6,600-kilometer cable from Virginia to France.

  • “Curie” - A 10,500-kilometer cable that runs from Los Angeles, California, to Panama City, Panama, to Valparaiso, Chile.

  • “Grace Hopper” - A 7,000-kilometer cable that connects New York to the United Kingdom and Spain.

  • “Equiano” - A 15,000-kilometer cable that runs from Portugal along the western coast of Africa to end in South Africa.


Dig deeper into Big Tech’s spiderweb of undersea fiber in the searchable table below, or visit TeleGeography’s comprehensive Submarine Cable Map.

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Tesla’s made-in-China vehicle sales jumped 36% in April

Tesla’s sales of made-in-China vehicles — sold across China, Europe, and other international markets — rose 36% year over year to 79,478 units in April. The increase marks the sixth straight month of annual growth in sales of vehicles made in the worlds largest manufacturing economy, suggesting the EV maker’s overseas business may be stabilizing after a difficult stretch.

That said, China wholesale deliveries fell from March, even as overall new energy vehicle sales rose 7% during the period.

Later this month, the China Passenger Car Association will report China-only sales, offering a clearer picture of performance in Tesla’s second-largest market.

Later this month, the China Passenger Car Association will report China-only sales, offering a clearer picture of performance in Tesla’s second-largest market.

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Anthropic’s scramble for compute now includes rival xAI

Another day, another major partnership with an AI rival. This time, Anthropic signed a deal with SpaceX’s xAI to access compute from its Colossus 1 data center to help it improve capacity for its Claude Pro and Claude Max subscribers. Just yesterday, The Information reported that Anthropic planned to spend $200 billion on Google Cloud services over the next five years. As Sherwood News’ Luke Kawa wrote:

“Anthropic has been a victim of its own success: the popularity of Claude Code and Cowork have revealed compute constraints and left users frustrated by caps. In response, the Claude developer has embarked upon a mad scramble for compute, striking or expanding deals with CoreWeave, Amazon, Google, and Broadcom.”

Now, it’s adding xAI to the list — even as the Elon Musk company builds a competing model.

In less terrestrial news, xAI said that as part of the agreement, Anthropic “expressed interest in partnering to develop multiple gigawatts of orbital AI compute capacity.”

“Anthropic has been a victim of its own success: the popularity of Claude Code and Cowork have revealed compute constraints and left users frustrated by caps. In response, the Claude developer has embarked upon a mad scramble for compute, striking or expanding deals with CoreWeave, Amazon, Google, and Broadcom.”

Now, it’s adding xAI to the list — even as the Elon Musk company builds a competing model.

In less terrestrial news, xAI said that as part of the agreement, Anthropic “expressed interest in partnering to develop multiple gigawatts of orbital AI compute capacity.”

tech

SpaceX and Tesla’s Terafab could cost $119 billion — far more than expected

The initial phase of SpaceX and Tesla’s joint chip production effort, called Terafab, could cost $55 billion, with additional phases adding up to $119 billion in capital investment, Reuters reports, citing a notice posted on a Texas county website. Ultimately the goal of Terafab is to build enough in-house AI chip capacity to supply both companies.

The price tag is also higher than expected. Morgan Stanley had previously estimated Terafab would cost $34 billion to $45 billion.

Fortunately for Tesla, whose capex is expected to skyrocket this year, much of the early spending will sit on SpaceX’s balance sheet.

Here’s Musk on the last earnings call:

“SpaceX is going to take care of like the initial phase of the scaled up Terafab... Any kind of intercompany thing has to be approved by both the SpaceX and Tesla board of directors. It’s got to go through a conflict resolution. It’s going to have, unfortunately, a lot of complexity because we’ve got to make sure Tesla shareholders are served and SpaceX shareholders are served, and strike the right balance there.”

The price tag is also higher than expected. Morgan Stanley had previously estimated Terafab would cost $34 billion to $45 billion.

Fortunately for Tesla, whose capex is expected to skyrocket this year, much of the early spending will sit on SpaceX’s balance sheet.

Here’s Musk on the last earnings call:

“SpaceX is going to take care of like the initial phase of the scaled up Terafab... Any kind of intercompany thing has to be approved by both the SpaceX and Tesla board of directors. It’s got to go through a conflict resolution. It’s going to have, unfortunately, a lot of complexity because we’ve got to make sure Tesla shareholders are served and SpaceX shareholders are served, and strike the right balance there.”

tech

Apple to let users choose between Anthropic, Google, and OpenAI models

Apple has been inching toward letting outside AI power its devices — and now it’s going further.

The company plans to let users choose between rival AI models across iOS 27, due this fall, expanding beyond ChatGPT to include players like Google and Anthropic, Bloomberg reports. The difference this time: deeper integration, with outside models powering features like Siri, writing tools, and image generation across the system.

Currently, Apple’s voice assistant, Siri, gives users the ability to query ChatGPT, but doing so requires a clunky extra step and usage has been poor. Meanwhile, Apple’s own AI tools have fallen short. (Apple has decided to use Google’s Gemini to power Siri in the future.) It’s not clear users care which AI is under the hood — as long as it works.

Currently, Apple’s voice assistant, Siri, gives users the ability to query ChatGPT, but doing so requires a clunky extra step and usage has been poor. Meanwhile, Apple’s own AI tools have fallen short. (Apple has decided to use Google’s Gemini to power Siri in the future.) It’s not clear users care which AI is under the hood — as long as it works.

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