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Google plans to invest up to $40B in Anthropic

bloomberg.com

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

#321

Post by rnxrx »

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.

It's not just code generation, either - more and more people in my own org are using Claude Code for infrastructure automation, devops, etc. Obviously some amount of code in there, but an absolute ton of tokens being consumed just dealing with Kubernetes work at scale.

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

#322

Post by [deleted] »

keybored wrote: post #244
consumer451 wrote: post #226

Earlier quoted context omitted.

> Why do AI boosters like yourself... I believe that I am more of an AI realist. The agentic dev tools are really helping me out, but if I could wave a magic wand to make AI go away for a hundred years, I would do it. I really hope that we can all laugh at how wrong I was. However, I believe that the horrors will likely outweigh the benefits. Our global society/political systems are not ready for Stasi as a Service,…

Getting in on the astounding action before the world turns to shit. Who could call me a starry-eyed idealist? I have invested in bunkers.

[deleted]

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

#323

Post by dpark »

temp8830 wrote: post #314
dpark wrote: post #240

Earlier quoted context omitted.

Do you really think companies have started spending millions on tokens and no one from finance has been involved? You could argue that all the spending is wasted (doubtless some is), but insisting that the decision is being made in complete ignorance of financial concerns reeks of that “everyone’s dumb but me” energy.

> Do you really think companies have started spending millions on tokens and no one from finance has been involved? Oh, they were involved all right. They ran their analyses and realized that the increase in Acme Corp's share price from becoming "AI-enabled" will pay for the tokens several times over. For today. They plan to be retired before tomorrow.

Sounds like they did train in corporate finance.

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

#324

Post by cobolcomesback »

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…

We’re seeing the exact same where I work. Our main Slack channels have become inundated with “new tool announcements!”, multiple per day, often solving duplicate problems or problems that don’t exist. We’ve had to stop using those channels for any real conversation because most people are muting them due to the slop noise.

And what’s worse is that when someone does build a decent tool, you can’t help but be skeptical because of all the absolute slop that has come out. And everyone thinks their slop doesn’t stink, so you can’t take them at their word when they say it doesn’t. Even in this thread, how are you to know who is talking about building something useful vs something they think is useful?

A lot of people that have always wanted to be developers but didn’t have the skills are now empowered to go and build… things. But AI hasn’t equipped them with the skill of understanding if it actually makes sense to build a thing, or how to maintain it, or how to evolve it, or how to integrate it with other tools. And then they get upset when you tell them their tool isn’t the best thing since sliced bread. It’s exhausting, and I think we’ve yet to see the true consequences of the slop firehose.

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

#325

Post by skybrian »

zymhan wrote: post #307
skybrian wrote: post #276

Context: a few weeks ago, Anthropic signed a deal to buy "multiple gigawatts of next-generation TPU capacity" from Google and Broadcom [1]. There have been several previous deals, too. Some people call this sort of thing a "circular deal", but perhaps a better way to think of it is as a very large-scale version of vendor financing? The simple version of vendor financing is when a vendor gives a retailer time to pay f…

To be honest, I think "vendor financing" is still a very risky premise. Vendors may be positioned to know how a customer is doing, but they're also incentivized to overestimate how well a customer is going to perform. GE Capital (edit: and GMCA) is a great example of how seemingly reasonable vendor financing can cause the lender serious problems.

The risks are different, but there's no getting around that the value of any investment is based on future cash flows and that's speculating about the future.

To the extent that Google and Anthropic are competing for AI business, Google is somewhat hedged against Anthropic winning market share. They still get data center revenue and they own equity, so that’s a consolation prize.

On the other hand, it’s increasing Google’s investment in AI, in general.

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

#326

Post by consumer451 »

james2doyle wrote: post #309
consumer451 wrote: post #104

It 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.

You’re paying the subsidized cost. Those margins will shrink once the real bill comes due. I really think everyone will look back at this time as the golden area of cheap AI. We are already seeing the costs (and restrictions/limits) creep up with the Western models.

> You’re paying the subsidized cost.

100% agree. I have been trying to tell everyone to build their ideas, and exploit this environment where 100B of VC money into OpenAI/Anthropic = some percentage of money invested into your idea. This is the golden era of building! The music is gonna stop soon. Build now ffs!

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

#327

Post by stasomatic »

barnabee wrote: post #254
an0malous wrote: post #153

Earlier quoted context omitted.

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.

Where I work: - Development velocity is very noticeably much higher across the board. Quality is not obviously worse, but it's LLM assisted, not vibe coding (except for experiments and internal tools). - Things that would have been tactically built with TypeScript are now Rust apps. - Things that would have been small Python scripts are full web apps and dashboards. - Vibe coding (with Claude Desktop, nobody is using…

I am hobbyist playing around. Recently dropped CC (which gave me a sense of awe 2 months ago), but they realized GPUs need CapEx and I want to screw around with pi.dev on a budget. Then on to GH Copilot but couldn't understand their cost structure, ran out of quota half month in, now on Codex. I don't really see any difference for little stuff. I also have Antigravity through a personal Gmail account with access to Opus et al and I don't understand if I am paying for it or not. They don't have my CC so that's a breather.

It's all romantic, but a bunch of devs are getting canned left and right, a slice of the population whose disposable income the economy depends on.

It's too late to be a contrarian pundit, but what's been done besides uncovering some 0-days? The correction will be brutal, worse than the Industrial Revolution. Just the recent news about Meta cuts, SalesForce, Snap, Block, the list is long.

Have you shipped anything commercially viable because of AI or are you/we just keeping up?

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

#328

Post by neya »

zakisaad wrote: post #147
consumer451 wrote: post #104

It 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.

You could say the same about Codex (and other tooling). Opus as a model is market leading (trading blows with the greatest that OpenAI is peddling), but there will be a reckoning when open weight models are good enough - and I'd argue we are almost there with some of the latest releases. If you hook up the latest OpenAI models to something like OpenCode, its a taste of what an open harness with a powerful model (outs…

> when open weight models are good enough

I think Deepseek is already there.

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

#329

Post by consumer451 »

ManuelKiessling wrote: post #278
consumer451 wrote: post #104

It 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.

Would you mind sharing what you can and want about how the sausage is made? I would love to hear concrete cases where actual leverage is measurable. I‘m asking in good faith, not to attack your standpoint.

I would happily do so on a 1:1, private level. See bio for contact.

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

#330

Post by johanneskanybal »

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.

It's a great tool, and at 1/10 or 1/100th the cost of actual developers. In the context of yc I guess watch out getting re-disrupted by a smaller team faster than before. But that's really the trend the past 40 years so nothing is new. Well maybe the velocity combined with us loosing it's footing at the same time.

But yea it's not gonna make facebook 20% better tomorrow just that you need 5 people instead of 40 to build the next facebook.

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