News for hackers. Stuff that matters.

A comment on Google agrees to invest up to $2B in OpenAI rival Anthropic. Parent comment

Re:Google agrees to invest up to $2B in OpenAI rival Anthropic by Jensson on Saturday October 28, 2023 @02:04PM (#38052021)
AWS and Google Cloud invested in it for exactly the same reason, to enlarge their cloud businesses. Googles previous investment came with a cloud partnership, then AWS also gave them a cloud partnership, and now Google strengthened their cloud partnership to ensure AWS doesn't take it all.

So this bet doesn't have anything to do with AI, it is a competition between AWS and Google cloud. They are competing over who gets to sell shovels in a gold rush.

[ Parent | on HN ]
Re:Google agrees to invest up to $2B in OpenAI rival Anthropic by fauigerzigerk on Saturday October 28, 2023 @02:15PM (#38052093)
This makes absolute sense when looking at GCP and AWS in isolation.

But Google is at the same time propping up a competitor while Amazon is propping up a purely complementary service.

[ Parent | on HN ]
Re:Google agrees to invest up to $2B in OpenAI rival Anthropic by Jensson on Saturday October 28, 2023 @02:22PM (#38052159)
But Google is very fragmented as I said, what cloud does has little to do with what other parts of Google does. This investment makes sense for cloud so they make it. It is a weakness and a strength of the company, Amazon is much more top down and that leads to other problems.
[ Parent | on HN ]