Google has announced plans to invest up to $40 billion into Anthropic, an AI startup and frequent competitor, according to a report by Bloomberg. This follows Anthropic's recent agreements with Google and Broadcom for "multiple gigawatts of next-generation TPU capacity."
Under the new deal, Google will commit $10 billion immediately at Anthropic's current valuation, with an additional $30 billion contingent on Anthropic meeting specific performance milestones. As part of the agreement, Anthropic will utilize Google's TPUs (Tensor Processing Units) and servers, receiving 5 gigawatts of computing capacity in 2027.
The structure of this deal mirrors a recent agreement between Anthropic and Amazon. In April, Amazon announced a $25 billion investment in Anthropic, including an initial $5 billion commitment and up to $20 billion tied to milestones. Anthropic also agreed to use Amazon's Trainium chips for its AI models.
These deals highlight Anthropic's rapid financial growth and the AI industry's tendency toward "circular deals." Anthropic, which recently raised $30 billion in its latest funding round, will likely reinvest portions of these funds into Google and Amazon's hardware, perpetuating a cycle of investment and infrastructure spending seen across major AI players like OpenAI, Nvidia, and Microsoft.
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