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by stingraycharles 33 days ago
> I think the idea is that you can launder your team or product AI spend through your AWS account.

This is exactly it. For any reasonably sized org, setting up new contracts with new vendors involves a lot of procurement, lawyers, negotiations, etc.

If a team can just click a button in AWS, there’s no issue.

This is a product / solution that solves an organizational problem, not a technical one.

I wouldn’t even call it a hack as much as extremely common a strategy.

2 comments

Sadly it’s going to be more nuanced.

The Bedrock models, at least, have additional click through EULAs for Anthropic models. You’re going to need to review and agree to those as well.

Claude is going to be marketplace spend and that’s usually capped towards your PPA at 25%.

> click through EULAs

Every year "don't agree to things on behalf of the company"

Every day "click here to agree that ..."

I've always wondered how this plays out in practice. I might certify that I have signing authority but I most certainly do not. What happens in the US (in Delaware?) when there's a dispute?
We had a customer try to back out of a contract by claiming the person signing didn't have authority. It didn't work because the person's manager (who has authority) was included in all of the communication.

Legally it didn't matter whether the signer had authority because the way the signer's company behaved during the signing process implied that the signer had authority.

E.g. If the CTO at a company tells a vendor to "send the contract over to my product manager" then the CTO created the impression with the counterparty that the product manager has authority, and the company will be hound to the contract based on that fact regardless of whether the product manager actually has authority or not.

I'm sure it's more nuanced than this, but my understanding is actual authority is less relevant than implied authority. E.g. if you have your board of directors take away the CEO's authority to sign a contract, it doesn't automatically invalidate everything the CEO signs, since a counterparty can reasonably assume that the CEO has authority just based on their job title.

Generally any W-2 has authority to enter into contracts, strictly from the vendor’s POV. As a vendor you don’t need to get your customer’s publicly listed officer or director to sign off on contracts. The W-2 can also be fired for entering their employer into the contract, but that's not (directly) the vendor's problem.

Once a vendor has entered into a contract, that could change - e.g. "any change orders must be approved by $EMPLOYEE_SET".

It's absolutely wild that every W-2 employee can expose their employer to essentially unlimited liability, but AFAIK, that's the truth.

Well, you see, I had my cat click "submit", so we don't have to pay the bill!
"Practice is policy"
No, "This is exactly not it." They are buying your data on a cheap.
As someone who is dealing with the procurement of both in a medium sized it, finops and infosec are exactly it.
Do you have experience selling to fortune 100 sized organizations?

“I don’t have the budget for this but we have AWS credits” is something teams beg for all the time.

When people beg to give you money, you accept it. Why? It’s not some conspiracy theory. You accept the money because it’s money.

100% correct... Have EPD or PPA? Reduced spend because of reasons? Well now you can make it up in claude tokens.