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Google plans to invest up to $40B in Anthropic

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

#281

Post by Aurornis »

throwawaytea wrote: post #70
JumpCrisscross wrote: post #56

Earlier quoted context omitted.

> it's apparently worth more than products Americans constantly buy and rely on for their main life What are you counting in this category?

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.

> My neighbors just gave Ford $60k. It'll be a while until my neighbor gives Anthropic $60k.

AI company revenues aren't driven by consumer subscriptions.

The people doing $20 or even $200 per month plans for their side projects aren't driving the demand. It's going to be business customers spending $1000/month or more per developer and all of the companies feeding their business processes through the API like call centers, document processing, and everything else.

If you're thinking of AI companies as consumer plays you're only seeing the tip of the iceberg. We get cheap access to Claude because they want us playing with it so when it comes time for our employers to choose something we can all lobby for Anthropic.

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

#282

Post by skizm »

Weren't there reports of Anthropic's stock trading on secondary markets at $1T valuation recently? Now Google invests at a $350B valuation. I get valuations are often times just smoke and mirrors, but this seems like a pretty big disconnect. What's going on there?

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

#283

Post by casey2 »

Jagerbizzle wrote: post #250
casey2 wrote: post #235

Earlier quoted context omitted.

Such as?

I answered this in a different comment below, but a lot of the friction is around the amount of time it takes to test/review/submit etc, and a lot of this is centered around tooling that no one has had the time to improve, perf problems in clunky processes that have been around longer than anyone individual, and other things of this nature. Addressing these issues is now approachable and doable in one's "spare time".

The point of that friction is to keep the human in the loop wrt code quality, it's not meant to be meaningless busywork. It's difficult to believe that you sustain the benefit of those systems. Anthropic and Microsoft publicly failed to keep up code quality. They would probably be in a better spot currently if they used neither, no friction, no AI. But that friction exists for a reason and AI doesn't have the "context length" to benefit from it.

This the the difference between intentional and incidental friction, if your CI/CD pipeline is bad it should be improved not sidestepped. The first step in large projects is paving over the lower layer so that all that incidental friction, the kind AI can help with, is removed. If you are constantly going outside that paved area, sure AI will help, but not with the success of the project which is more contingent on the fact that you've failed to lay the groundwork correctly.

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

#284

Post by Aurornis »

uncivilized wrote: post #266
blueblisters wrote: post #218

Earlier quoted context omitted.

I feel the same until I’m reminded I’m paying Anthropic $100 every month for something that’s indispensable to me now and would probably pay a lot more. Very inelastic demand as long as competition is low at the frontier.

Are you paying that, or is your work paying for it? If you’re using it for personal work, why is $100 worth it?

$100/month isn't much for developer tooling. If you add up how much I spend on hardware upgrades, other SaaS products like backup services, software licenses, and other things it's easy to justify $100/month for a powerful tool.

I pay for my own AI provider subscriptions because keeping work and personal strictly separated is important for me. I do know some people who secretly pay $200/month for Claude and use it at their job even though it's not approved. I do not recommend doing that, but it shows that some people value this for their work.

For developers earning more than $10K per month, spending less than 1% of salary on tooling to make the job easier is easy to justify.

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

#285

Post by mhitza »

uncivilized wrote: post #210
0xbadcafebee wrote: post #159

Earlier quoted context omitted.

It's an actual bubble specific to AI. This investment is just another example of the bubble. Pre-2008, all the investment would be coming from banks. Post-2008, all the investment came from VCs... but VCs got tapped out, so AI companies went to bigger private capital. They tapped out all the private capital. So now they're making the rounds, making deals with any corporations left with tens/hundreds of billions in ca…

Which big deals have fallen through?

"Nvidia’s $100 billion OpenAI deal has seemingly vanished" https://arstechnica.com/information-technology/2026/02/five-...

"Disney cancels $1B deal with OpenAI after video platform Sora is shut down: 'The future is human'" https://finance.yahoo.com/sectors/technology/articles/disney...

And if I recall correctly the AI datacenter deal isn'tdoing Oracle stock any favours.

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

#286

Post by trhway »

an0malous wrote: post #153
tiffanyh wrote: post #116

Earlier quoted context omitted.

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...

What is all this AI doing? People are spending 10’s to 100’s of billions and no service or technology seems better or cheaper. Everything is more expensive and worse.

>What is all this AI doing? People are spending 10’s to 100’s of billions and no service or technology seems better or cheaper. Everything is more expensive and worse.

That "more expensive" is someone's revenue. May be AI is the kind of technology that allows to make more and more revenue by making things more expensive and worse than by making them better and cheaper.

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

#287

Post by panarky »

JumpCrisscross wrote: post #58
nly wrote: post #33

Earlier quoted context omitted.

Top of the book? Nobody on the secondary market is investing $30bn

> Nobody on the secondary market is investing $30bn Correct. But I think $5 to 10bn are sitting ready for $700 to 800, which strongly implies Google is getting a solid deal on this.

[dead]

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

#288

Post by Forgeties79 »

lovich wrote: post #209
JumpCrisscross wrote: post #141

Earlier quoted context omitted.

> they should just get permabanned by a bot with no explanation I really like HN's system of flagging versus banning. Like, I genuinely mapped TDS to Trump Derangement Syndrome, something I wasn't doing before because I thought it was a joke versus something his supporters thought of seriously.

Accusing someone of TDS for anything short of complete subservience to Trump is a thought terminating sentence they use to protect their fragile egos and to try and darvo their way out of any legitimate position.

I just can’t imagine reacting that way in the name of someone I don’t even know, let alone a politician.

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

#289

Post by operatingthetan »

Aurornis wrote: post #281
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.

> My neighbors just gave Ford $60k. It'll be a while until my neighbor gives Anthropic $60k. AI company revenues aren't driven by consumer subscriptions. The people doing $20 or even $200 per month plans for their side projects aren't driving the demand. It's going to be business customers spending $1000/month or more per developer and all of the companies feeding their business processes through the API like call ce…

>when it comes time for our employers to choose something we can all lobby for Anthropic

They should stop messing with us then. Stealth model changes, threatening to take code away on the $20 plan, the list goes on.

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

#290

Post by trhway »

msy wrote: post #185
Jagerbizzle wrote: post #162

Earlier quoted context omitted.

I'm burning an insane number of tokens 8-12 hours a day for the dramatic improvement of some internal tooling at a big tech company. Using it heavily for an unannounced future project as well. I presume I'm not the only one.

We suddenly have a proliferation of new internal tools and resources, nearly all of which are barely functional and largely useless with no discernible impact on the overall business trajectory but sure do seem to help come promo time. Barely an hour goes by without a new 4-page document about something that that everyone is apparently ment to read, digest and respond to, despite its 'author' having done none of thos…

>Barely an hour goes by without a new 4-page document about something that that everyone is apparently ment to read, digest and respond to, despite its 'author' having done none of those steps, it's starting to feel actively adversarial.

well, isn't that what AI can be used effectively for - to generate [auto]response to the AI generated content.

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