Google intends to invest up to $40 billion in Anthropic to support its growing computing demands, as reported by Bloomberg. Initially, the Alphabet subsidiary is committing $10 billion at a $350 billion valuation for Anthropic, with an additional $30 billion contingent on performance targets, according to Anthropic.
This investment follows the release of Anthropic’s latest model, Mythos, to a select group of partners this month. Mythos is claimed to be Anthropic’s most powerful model, with significant cybersecurity applications. Due to potential misuse, its access is restricted while being evaluated with selected organizations, although it has already been accessed by unauthorized users. Running it at scale is also expected to be costly.
The AI race is increasingly about access to the necessary compute for training and deploying systems. OpenAI has secured this through various multi-hundred-billion-dollar deals across cloud providers, chip suppliers, and energy, including a recent expanded agreement with Cerebras.
Anthropic has responded to widespread complaints about Claude use limits by forming infrastructure deals. Recently, it partnered with CoreWeave for data center capacity and secured an additional $5 billion investment from Amazon, expecting to spend up to $100 billion for about 5 gigawatts of compute capacity over time.
Though Google is a direct competitor in AI models, it remains a crucial infrastructure supplier for Anthropic. Anthropic depends on Google Cloud for chips and infrastructure, including Google’s tensor processing units (TPUs). These specialized AI workload chips are among the best alternatives to Nvidia’s processors.
Anthropic’s relationship with Google predates the recent news. Earlier, Anthropic announced a partnership with Google and Broadcom, the designer of Google’s custom AI chips, facilitating access to TPU-based computing capacity starting in 2027, reportedly reaching 3.5 gigawatts.
This new Google investment broadens the partnership, with Google Cloud providing 5 gigawatts of capacity over the next five years, with scalability options.
Anthropic’s valuation was $350 billion as of February, with investors looking to support it at $800 billion or more, according to Bloomberg. The company is also contemplating an IPO as soon as October.