$40B. Numbers mean nothing anymore
Google plans to invest up to $40B in Anthropic
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Re: Google plans to invest up to $40B in Anthropic
#102So $40B in google cloud credits in return for % in equity. Didn't Amazon AWS do the same recently?
Anthropic takes $5B from Amazon and pledges $100B in cloud spending in return
Re: Google plans to invest up to $40B in Anthropic
#103Re: Google plans to invest up to $40B in Anthropic
#104It is very difficult for me to see any amount of money being thrown at Anthropic as a bad idea.
The amount of new revenue that I am personally able to create for my clients, using Claude models for dev, and Claude models inside the insanely agile products delivered, is astounding.
If I was not currently experiencing this myself, and someone told me that this was possible, I would be calling them names.
Re: Google plans to invest up to $40B in Anthropic
#105[deleted]
Re: Google plans to invest up to $40B in Anthropic
#106It feels like the market is full Wiley Coyote on frontier model makers, and I like Anthropic's B2B business model. But all progress points to a commodification of foundation models--Google first named it as "we have no moat, neither does anyone else." So there must be some secondary play driving this, right? Hardware sales? Hedging for search ad revenue? Still feels mispriced. I think asset inflation leaves too much…
"we have no moat, neither does anyone else." is just an employee's personal work blog
Re: Google plans to invest up to $40B in Anthropic
#107Google seems to own a bit of everyone.
you might even say they own the whole alphabet at this point
Re: Google plans to invest up to $40B in Anthropic
#108Earlier quoted context omitted.
If AI is commoditising, who is Bahrain and who are the Saudis?
What does that mean?
> What does that mean?
I really couldn't have been more obscure, could I? :P
In 1932, "the first oil field in the Persian Gulf outside of Iran" was discovered in Bahrain [1]. (The same year Saudi Arabia announced unification [2].)
In the end, Saudi Arabia had larger reserves and wound up geopolitically dominating its first-moving rival. In commodities, the game tends to be scale in part through land grabbing. Less who got where first.
To close the analogy, if AI does wind up commoditised, the layers at which that commodity is held are probably between power and compute [3]. So if AI commoditises (commodifies?), Google selling computer (and indirectly power) to Anthropic and OpenAI is the smarter play than trying to advantage Gemini. (If AI doesn't commoditise, the opposite may be true–Google is supercharging a competitor.)
[1] https://en.wikipedia.org/wiki/Bahrain_Petroleum_Company
[2] https://en.wikipedia.org/wiki/Proclamation_of_the_Kingdom_of...
[3] The alternate hypothesis is it's at distribution.
Re: Google plans to invest up to $40B in Anthropic
#109I find it crazy that Google considers Anthropic to be worth almost 10% of Google itself (350B valuation mentioned in the article). Anthropic gets traction but has no moat, no infrastructure and relatively small team working for it. I feel for 40B you can get a lot of very smart people and a lot of very good hardware to outcompete it.