Google to Invest Up to $40 Billion in AI Rival Anthropic
Google-parent Alphabet announced a massive $40 billion investment in AI startup Anthropic on Friday, with $10 billion in immediate cash and another $30 billion contingent on meeting performance targets. The deal reflects intense competition in AI infrastructure as Anthropic's Claude model gains major traction.
Historic AI Investment
Google-parent Alphabet will invest up to US$40 billion in Anthropic, as the tech giant deepens its partnership with the artificial intelligence startup that is also its rival in the global AI race, with Google committing $10 billion now in cash at a valuation of $350 billion to help support a major expansion of its computing capacity, and will invest $30 billion more if the Claude maker meets performance targets.
Computing Infrastructure Deal
Google Cloud has agreed to deliver five gigawatts of computing power to Anthropic across a five-year window, with the door open to several additional gigawatts down the line, according to Bloomberg.
Competitive Positioning in AI
The investment comes just days after e-commerce giant Amazon said it will invest up to $25 billion in the startup, which has managed to stand out in the crowded AI industry by focusing its model training on coding. The company's annual run-rate revenue surpassed $30 billion this month, up from about $9 billion at the end of 2025.
Market Performance
Google stock was up more than 1% Friday following the news.