Google plans to invest up to $40B in Anthropic

Anthropic, meanwhile, is spending hundreds of millions buying customer commitments from PE firms to inflate that DAU number. They now have a larger war chest to spend on artificial user acquisition to further inflate that value for future funding rounds.

IIRC Google already outright owns 15% of Anthropic.

At this point I'll believe it when the money actually moves.

There's been far to many "plans" and "commitments" and an awful lot of nothing actually happening.

My AI use is significantly down. I'm sick of following Chat GPT "advise" only to learn how egregiously incorrect it is. Don't ask for DMV advice on registering an out of state car!

From a comment below:

> My main job isn't writing code but I try to keep Claude Code and OpenCode busy and churning away on something as close to 100% of the time as I can without getting in the way of my other priorities

I’ve seen many people say this the past few weeks i.e that their daily job now is no longer coding and has flipped to being a full Claude Feeder making sure its always churning.

As someone who uses Claude Code daily, I still find myself reading code and thinking more vs just shoveling coal as fast as I can into the Claude steam train. Am I doing things wrong?

I wonder what will this mean for Gemini? Will it survive?

There is a lot of money in the Network of Evil.

I am still upset at these companies for driving up the RAM prices. "Free market" has evident problems - companies are way too dominating here. Average Joe suffers from this price mafia, assuming he or she needs to purchase RAM now.

Cash injection disguised as an "investment"

I 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.

It’s pretty wild how badly Altman siding with Hegseth has backfired. (And how competently Dario has played his hand.)

I don’t think that’s the ultimate cause of the turnaround in fortunes. But it strikes me, at least from the investor and potentially urban-consumer perspectives, as a pivotal moment in both companies’ fortunes.

How many gigantic companies can join this before it crashes?

great move by google

10B at their valuation from last November is an absolutely killer deal. If Anthropic had sufficient compute supply they could raise at 2x easily if not 3x.

What a wonderful world our tech overlords are building for us leftover humans

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Regardless of if this is “vendor financing” or “circular financing” the history books are riddled with this sort of stuff ending very badly.

It’s concerning that the only thing that seems to be keeping the AI bubble inflated at this point is money from the folks selling things to AI companies. That’s very much not a good sign no matter how you spin it.

I’m a fan of AI and there’s clearly value to it… however that value seems completely out of whack with the money pumping into the ecosystem and at some point such irrational behaviors break.

They need it to fend off Crabby Rathbun from watching YouTube videos and commenting. The paperclip race is on, and we must win it!