Google Plans to Invest Up to $40 Billion in Anthropic

Anthropic said the deal builds on its long-term partnership with Google. Earlier this month, it secured 5 gigawatts of computing capacity through an agreement with Google and Broadcom, which will begin coming online next year, with the option to add more in the future.

Google also gives customers access to Anthropic’s Claude models through its cloud platform, which competes with Amazon Web Services and Microsoft Azure. In addition, Google offers its own tensor processing units (TPUs) as an alternative to Nvidia’s GPUs.

The partnership between the two companies began in 2023, when Google invested $300 million in Anthropic for a roughly 10% stake, followed by another $2 billion later that year. Before this new deal Google had invested over $3 billion in total and reportedly held around 14% of the company.

Now, major tech companies are investing tens of billions of dollars in leading AI firms like OpenAI and Anthropic, with funding rounds much larger than typical startup investments, much of which is expected to generate revenue over time.

Anthropic’s latest deal with Google comes as the company works to handle growing demand for its Claude models, which have put pressure on its infrastructure. OpenAI has also criticized Anthropic for lacking sufficient computing capacity.

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Google’s investment is similar to a recent deal with Amazon, which invested $5 billion in Anthropic and may invest up to $20 billion more based on certain performance targets.

Anthropic was founded in 2021 by former OpenAI researchers and executives. Its AI products, especially the Claude Code assistant, have grown rapidly in popularity over the past year, and the company’s annual revenue has exceeded $30 billion.

“Our users tell us Claude is increasingly essential to how they work, and we need to build the infrastructure to keep pace with rapidly growing demand,” Anthropic CEO Dario Amodei said in a statement at the time. “Our collaboration with Amazon will allow us to continue advancing AI research while delivering Claude to our customers, including the more than 100,000 building on AWS.”

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