Mint Explainer | Google vs OpenAI vs Anthropic: Who is really leading the AI race? | Mint

Summary

Google's current AI spending is among the largest in the world, and comes at a time when the battle between OpenAI and Anthropic, the two largest AI startups in the world, inches closer towards a trillion-dollar IPO face-off.

On 19 May, Google unveiled artificial intelligence (AI) models that it said are specifically designed for high-speed, low-cost AI operations. The company's current AI spending is among the largest in the world, and comes at a time when the battle between OpenAI and Anthropic, the two largest AI startups in the world, inches closer towards a trillion-dollar IPO face-off. But, amid all the rush, is Google quietly inching ahead of the two cutting-edge firms? Mint explains

Why is Google chasing a different AI trajectory?

While both Anthropic and OpenAI are pushing the bar on AI innovation, Google's showcase at its recent annual event, I/O, was squarely focused on products. While this isn't to say that Google is shunning frontier AI, chief executive Sundar Pichai admitted at post-I/O interviews with media outlets that the company is consciously doubling down on AI usability, rather than sheer cutting-edge innovation. As conversations about real-world AI deployment increase, Google's approach is likely to cater to this. Such an approach could look at maximizing revenue generation from AI, including early hardware sales through Google's smart eyewear.

Isn't Google behind Anthropic and OpenAI on AI innovation?

On most popular benchmarks, OpenAI's GPT-5.5 xhigh and Anthropic's Claude 4.7 Opus rank marginally higher than Google's Gemini 3.1 Pro. This year, Google's Gemini 3.5 family of models could perform better, but this data isn't out yet. Google's latest, Gemini 3.5 Flash, is designed for speed of results and lower overall cost of AI applications. While Google was perceived to be behind the curve until April last year, its I/O 2025 conference saw the company catch up. Google's share price has reflected this, jumping from $174 to $379 in the last one year, until 26 May.

Also Read | As OpenAI and Anthropic soar, where do India's AI startups stand?

How big are the trio's AI budgets?

On 5 February, Pichai said Google will spend $185 billion on AI in the year ending December. The company earned $132.17 billion in net profit, and spent $61 billion on R&D in 2025. On 31 March, OpenAI announced a $122 billion fundraise at $852 billion valuation. Anthropic, as per a WSJ report on 15 May, is raising $30 billion at $900 billion valuation. Both are also reportedly eyeing initial public offerings (IPO).

What could this mean for Big Tech's AI race?

OpenAI is yet to report a profitable quarter. On 20 May, WSJ reported that Anthropic is set to clock its first profitable quarter between April and June, with projected revenue of $10.9 billion and net profit of $559 million in the ongoing period. In comparison, Google's parent Alphabet reported $109.9 billion in revenue and $62.6 billion in net profit in the March quarter. Experts believe that with deeper pockets, Google has the financial backing to take products to market. Anthropic and OpenAI are both still focused on building models, which is a cost-intensive process.

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Are any firms in India close to keeping pace?

Not really. India does not have any large technology company focused on building foundational models. For the most part, India's IT ministry and tech companies alike have said that chasing cost-intensive AI models may not be India's approach, and most firms may look at building public-sector AI utilities and services to scale AI deployment. The most-funded startup, Sarvam, is reportedly eyeing a $1.6-billion valuation funding round soon, Bloomberg reported in April. India also does not have AI hardware companies, though Sarvam, on 25 May, partnered with Finland's HMD Global to equip its 'Indus' AI bot in a smartphone.

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