Google Reportedly Backs Anthropic With Massive $40 Billion Deal

Google plans to invest up to $40 billion in Anthropic while supporting the AI company’s growing computing needs, according to a Bloomberg report.

The report said Alphabet’s Google unit is prepared to invest $10 billion immediately at a $350 billion valuation for Anthropic.

An additional $30 billion could follow if Anthropic meets certain performance targets.

The reported investment follows Anthropic’s release of its latest AI model, Mythos, to a limited group of partners this month.

Anthropic said Mythos is its most powerful model so far and has significant cybersecurity applications.

Because of possible misuse, the company has limited broader access while working with select organizations to test risks and safeguards. Reports also said the model has already reached unauthorized users.

Competition in AI is increasingly focused on access to computing resources needed to train and run advanced models.

OpenAI has recently secured major infrastructure deals involving cloud providers, chip suppliers, and energy companies.

That includes an expanded agreement this month with chipmaker Cerebras.

Anthropic has also been increasing its own infrastructure capacity after facing complaints in recent weeks over Claude usage limits.

Earlier this month, Anthropic signed an agreement with CoreWeave for additional data center capacity. The company also secured another $5 billion investment from Amazon this week.

That broader arrangement could see Anthropic spend up to $100 billion over time for around 5 gigawatts of compute capacity.

Although Google competes directly in AI models, it is also a major infrastructure supplier to Anthropic.

Anthropic relies heavily on Google Cloud for chips and infrastructure, including access to Google’s tensor processing units, or TPUs.

These chips are designed for AI workloads and are viewed as one of the leading alternatives to Nvidia processors.

Earlier this month, Anthropic also announced a partnership with Google and Broadcom to access multiple gigawatts of TPU-based compute capacity beginning in 2027.

A later Broadcom securities filing reportedly placed that figure at 3.5 gigawatts.

The new reported investment would expand that arrangement. Google Cloud is said to provide an additional 5 gigawatts of computing capacity over the next five years, with room for further expansion.

Anthropic was valued at $350 billion as recently as February. Bloomberg reported that investors have since shown interest in backing the company at valuations of $800 billion or more.

The company is also reportedly considering an initial public offering as soon as October.