Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Google plans to invest up to $40B in Anthropic

bloomberg.com

Post reply on HN
Print view View original

111–120 of 868 posts

Re: Google plans to invest up to $40B in Anthropic

#111

Post by nostromo »

zaphar wrote: post #62
ordinaryradical wrote: post #59

It 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…

Google does have a sort of temporary moat. They have a much better hardware supply line story than anyone else and the revenue to maintain that edge indefinitely.

Running AI at a loss long enough to kill the competition would run afoul of antitrust laws. Even more so since they’re bundling their AI products with their search monopoly.

Although I doubt this will stop them if they think it’s advantageous…

Re: Google plans to invest up to $40B in Anthropic

#112

Post by luke5441 »

RobRivera wrote: post #19
sevenzero wrote: post #16

Earlier quoted context omitted.

Which means they can allow themselves to blast money left and right? Its still a big investment.

Yes

No, they have a fiduciary duty to shareholders to not make obviously bad investments.

Re: Google plans to invest up to $40B in Anthropic

#113

Post by ipaddr »

ai-x wrote: post #99
throwawaytea wrote: post #70

Earlier quoted context omitted.

There are countless examples, but let's say Ford. Worth $150 billion, $50 billion not counting debt. My neighbors just gave Ford $60k. It'll be a while until my neighbor gives Anthropic $60k.

Did you add Google, Meta, Apple, Amazon in that because more people consume from these firms than Ford

His neighbour isn't spending $60,000 on all of those together

Re: Google plans to invest up to $40B in Anthropic

#114

Post by ValentineC »

Onavo wrote: post #88
33MHz-i486 wrote: post #55

I think the subtext of the last few weeks is the Anthropic was becoming severely capacity constrained (or approaching that). They seem to have had to sign two somewhat adverse contracts with Amazon and Google in short succession. suddenly model quality is back up again.

Well to a certain extent it also blunts competition, Gemini is less of a threat if their main investor is also backing Anthropic. The issue is when the pyramid scheme collapses...

Both Amazon and Google provide the Claude models via their Kiro and Antigravity IDEs respectively. It could also be investing in their attempt to own the IDE space.

Re: Google plans to invest up to $40B in Anthropic

#116

Post by tiffanyh »

33MHz-i486 wrote: post #55

I think the subtext of the last few weeks is the Anthropic was becoming severely capacity constrained (or approaching that). They seem to have had to sign two somewhat adverse contracts with Amazon and Google in short succession. suddenly model quality is back up again.

That’s what’s needed when you go from $9B in ARR … to $30B in ARR literally just one quarter later.

That kind of insane growth & demand is unprecedented at that scale.

https://www.anthropic.com/news/google-broadcom-partnership-c...

Re: Google plans to invest up to $40B in Anthropic

#117

Post by pixl97 »

nostromo wrote: post #111
zaphar wrote: post #62

Earlier quoted context omitted.

Google does have a sort of temporary moat. They have a much better hardware supply line story than anyone else and the revenue to maintain that edge indefinitely.

Running AI at a loss long enough to kill the competition would run afoul of antitrust laws. Even more so since they’re bundling their AI products with their search monopoly. Although I doubt this will stop them if they think it’s advantageous…

>would run afoul of antitrust laws

Buwahahahahahahahhahah

They drop a little cash on some shitcoin the president controls and those problems go away.

Re: Google plans to invest up to $40B in Anthropic

#118

Post by nostromo »

JumpCrisscross wrote: post #68
zaphar wrote: post #62

Earlier quoted context omitted.

Google does have a sort of temporary moat. They have a much better hardware supply line story than anyone else and the revenue to maintain that edge indefinitely.

If AI is commoditising, who is Bahrain and who are the Saudis?

The company with the access to cheap and plentiful energy and the real estate to build data centers will be Saudi Arabia in your analogy.

This is why SpaceX could be a dark horse in this race. Putting compute in space is expensive but so is building a data center in the US.

Re: Google plans to invest up to $40B in Anthropic

#119

Post by [deleted] »

pixl97 wrote: post #117
nostromo wrote: post #111

Earlier quoted context omitted.

Running AI at a loss long enough to kill the competition would run afoul of antitrust laws. Even more so since they’re bundling their AI products with their search monopoly. Although I doubt this will stop them if they think it’s advantageous…

>would run afoul of antitrust laws Buwahahahahahahahhahah They drop a little cash on some shitcoin the president controls and those problems go away.

[deleted]

Re: Google plans to invest up to $40B in Anthropic

#120

Post by akozak »

nostromo wrote: post #111
zaphar wrote: post #62

Earlier quoted context omitted.

Google does have a sort of temporary moat. They have a much better hardware supply line story than anyone else and the revenue to maintain that edge indefinitely.

Running AI at a loss long enough to kill the competition would run afoul of antitrust laws. Even more so since they’re bundling their AI products with their search monopoly. Although I doubt this will stop them if they think it’s advantageous…

Lower real operating costs isn't the same thing as below cost pricing.

US law here is nuanced. Good quick primer https://www.ftc.gov/advice-guidance/competition-guidance/gui...

Post reply on HN