[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?

[nikcub]

Amazon and Google get discounts because they bring more than just cash and help solve a very immediate problem for Anthropic

Great position to be in if you're Amazon and Google

[djaro]

It's valued at $1T by people who do not have $1T.

[mjuarez]

There's always backroom negotiations going on with investments like these. Private valuations are normally hyped-up, and with the current batch of AI companies, 100x so.

I assume Anthropic said something like "We'll give you 3% of our company for $30B, since we're valued at $1T now! So cheap!", and Google immediately came back with "Hell no. We'll give you even more, $40B... but it's for 11% of the company. Take it or leave it." With all the issues they're having, what leverage does Anthropic have at that point?

Basically, Google made them an offer they couldn't refuse.