Google Stock Up on Potential Acquisition of Anthropic Cloud Company
Google stock is up today as rumors circulate about the potential that they will acquire Anthropic to help their cloud computing business.
Quick overview
- Reports suggest that Alphabet is considering acquiring cloud computing company Anthropic, boosting GOOG stock by 1.34%.
- Anthropic is a key competitor to OpenAI, and its advanced AI models could enhance Google's capabilities in the field.
- Google is set to release its quarterly earnings report on October 29, with expectations of a 29% increase in cloud revenue.
- CEO Sundar Pichai announced advancements in quantum computing, indicating a strategic alignment with potential acquisition plans.
Reports have been circulating that Google’s parent company Alphabet (GOOG) will purchase cloud computing business Anthropic, leading to stock gains for GOOG.
Anthropic is one of the chief competitors to OpenAI, and their artificial intelligence models are some of the most advanced in the business. Google recently announced that their quantum computing research has produced some new advances, and at the same time a report has been going around claiming that Alphabet is looking to acquire Anthropic.
GOOG stock is up another 1.34% for Friday morning as investors anticipate a big sales announcement soon. If Alphabet wants to grow their quantum computing division, then acquiring Anthropic could be a good way to do that. Google has already put $2 billion into the company, but they have a rival investor in Amazon.
Google Reporting Quarterly Earnings Soon
Alphabet may finish the month strong as it gears up to release its quarterly earnings report on the 29th of October. If the company announces an Anthropic acquisition before then, we could see the stock price jump ahead of that report.
The expedition from Wall Street is that Google will report some positive numbers for its third quarter earnings. The current projection is a 29% increase in cloud revenue. That would mean earnings of $14.65 billion for the company in that area alone. OpenAI started working with Google recently, using their Cloud service, and Meta Platforms is now counted as one of their customers as well.
Google is also developing a rival to Nvidia’s own GPU processing chips, called TPUs. These AI accelerator chips are rumored to be on par with or even more powerful than Nvidia’s own.
Google CEO Sundar Pichai announced this week that the company had made some advances in quantum computing, beyond their previous announcement back in 2024 that they had seen improvements in error correction. The quantum computing technology that Google is working on could solve incredibly complex problems that the modern computer cannot handle. They do this by moving beyond the process of storing data as ones and zeros and instead storing it as quantum bits known as qubits.
It simply makes sense for Alphabet to acquire Anthropic at this point to complement their quantum computing arm, but Google and Alphabet have issued no official statement on the matter yet.
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