Google plans to invest up to $40 billion in AI company Anthropic, combining cash and computing resources in a deal announced in 2026. Alphabet’s Google is committing $10 billion immediately, with an additional $30 billion contingent on Anthropic meeting specific performance targets. The initial funding values Anthropic at $350 billion.
The investment expands an existing relationship between the two companies. Anthropic already relies heavily on Google Cloud for chips and infrastructure, including access to Google’s tensor processing units (TPUs) — specialized processors designed for AI workloads. Earlier this month, Anthropic announced a separate partnership with Google and chipmaker Broadcom to access TPU-based computing capacity beginning in 2027, with a Broadcom securities filing putting that figure at 3.5 gigawatts. The new Google deal adds a fresh 5 gigawatts of Google Cloud capacity over the next five years, with room to scale further.
The timing follows a period of infrastructure pressure for Anthropic. The company has faced widespread complaints about usage limits on its Claude AI assistant in recent weeks, prompting a series of capacity deals. These include an agreement with cloud provider CoreWeave for data center space and an additional $5 billion investment from Amazon, part of a broader arrangement under which Anthropic is expected to spend up to $100 billion for around 5 gigawatts of compute capacity over time.
Anthropic also recently released its latest AI model, Mythos, to a limited group of partners. The company describes Mythos as its most powerful model to date, with significant cybersecurity applications. Due to potential misuse risks, broader access has been restricted while Anthropic works with select organizations to evaluate those risks — though the model has already reached unsanctioned hands.
The deal underscores how access to computing infrastructure has become a central factor in the AI industry. Rival OpenAI has also moved to secure capacity through a series of multi-hundred-billion-dollar agreements with cloud providers, chip suppliers, and energy companies, including an expanded deal with chipmaker Cerebras this month.
Anthropic’s valuation stood at $350 billion as recently as February. Since then, Bloomberg reports that investors have been willing to back the company at $800 billion or more. Anthropic is also reportedly considering an IPO as soon as October.
Source: TechCrunch