In the last week Alphabet has positioned itself to go on the offense, going after exccess liquidity and excess compute.

I fear that OpenAi and Anthropic would not be able to compete against an adveserial Alphabet which owns it's own models, hardware, large corpus of data, talent and network effects. My prediction is that OpenAI and Anthropic will eventually be crushed by Alphabet as they run out of investment and compute, leaving Alphabet to have a monopoly on AI, at least in the west.

This is why I think OpenAI and Anthropic should really be one company, if they join forces and pool together investments and compute they'll stand a chance.

> This is why I think OpenAI and Anthropic should really be one company

I think the more companies there are, the better. Having 3 top labs competing, with 2 more trailing is better for consumers than having a monopoly/duopoly in goog or goog vs. the world. There'll be pressure on innovation, cost, availability and so on.

> My prediction is that OpenAI and Anthropic will eventually be crushed by Alphabet as they run out of investment and compute, leaving Alphabet to have a monopoly on AI, at least in the west.

It's the other way around (but the result would be the same): Alphabet has no need to make a 100x exit for the investors, and so can offer the service at cost + %markup, while Anthropic and OpenAI are VC funded, meaning that they need to show 10x - 100x exit for the investors.

IOW, there is no moat, Alphabet would have market-related pricing while VC-backed corps cannot offer market-related pricing.

Fun idea, but they may be better competition coming Competing with Google with different teams, models, and business strategies. Im sure google will also be happy selling the adds they put in their models for 1/3 of the revenue.

The scary thing for google is if the AI companies start moving into ad targeting and open sales portals.