The Actual Reason Why Google “Fell Out” of the AI Race Changes Everything

The Algorithmic Bridge · 2 months ago · 55 ● 2 sources

Google has voluntarily withdrawn from the recursive self-improvement race pursued by OpenAI and Anthropic, instead betting on world models that simulate reality rather than predict tokens. Demis Hassabis steers Google DeepMind toward this alternative path while OpenAI and Anthropic achieve escape velocity with coding agents and autonomous model improvement, with Anthropic and OpenAI generating approximately 90% of AI startup sector revenue between them. This strategic divergence positions Google either to lead with a fundamentally different approach to AGI or to become irrelevant if world models prove inferior to the scaling-and-agents path.