Google is set to invest up to $40 billion in artificial intelligence firm Anthropic, deepening its stake in the global AI race. The deal includes an initial $10 billion infusion at Anthropic’s $380 billion valuation, with the remaining $30 billion tied to performance milestones. Building on their multi-year partnership, Google will continue providing cloud infrastructure and access to Anthropic’s Claude AI models, while Anthropic leverages Google’s custom tensor processing units (TPUs) to meet surging demand for generative AI. The agreement follows Anthropic’s recent securing of 5 gigawatts of compute capacity through collaborations with Google and Broadcom.
The investment underscores intensifying competition among tech giants, with Google’s Gemini models competing directly against Anthropic’s offerings. Since its founding in 2021 by former OpenAI researchers, Anthropic has rapidly grown, with Claude models driving annualized revenue past $30 billion. Google has steadily increased its stake since its first $300 million investment in 2023, now holding about 14% prior to this deal. The move mirrors Amazon’s recent commitment of up to $25 billion in Anthropic, highlighting how major firms are committing tens of billions to secure leadership in advanced AI infrastructure and applications.