Google is planning to invest up to $40 billion in Anthropic. This is one of the biggest bets in the AI space and shows how serious things are getting between major players.
As per reports, Alphabet Inc. will start with an initial $10 billion investment. This values Anthropic at around $350 billion. The remaining $30 billion will be invested later, but only if the company meets certain targets. So the full amount will not come at once.
The news comes soon after Anthropic introduced its latest AI model, Mythos. The company says this is its most powerful model so far, and it can be useful in areas like cybersecurity. But the company is being careful. It has not made the model widely available yet. Only a few partners are testing it right now because of concerns around misuse. Even then, reports say the model has already reached some unauthorized users.
One big problem with these advanced models is cost. Training and running them need a lot of computing power. This includes expensive chips, large data centers, and huge electricity usage. This is where companies are now focusing heavily.
OpenAI has already secured large infrastructure deals. It is working with multiple partners, including chip company Cerebras, to make sure it has enough capacity for future models.
Anthropic is also expanding quickly. In recent weeks, many users complained about limits while using its Claude AI. The company responded by improving its infrastructure plans. It recently signed a deal with CoreWeave to get more data center capacity.
At the same time, Amazon has added another $5 billion investment in Anthropic. This is part of a larger agreement where Anthropic may spend up to $100 billion over time to secure around 5 gigawatts of computing power. This number alone shows how expensive AI has become.
Anthropic depends on Google Cloud for infrastructure, including access to Tensor Processing Units. These TPUs are made for AI tasks and compete with chips from NVIDIA.
This partnership is not new. Earlier, Anthropic also worked with Google and Broadcom to secure large computing capacity starting in 2027. That deal is expected to provide around 3.5 gigawatts of power.
With this new plan, Google Cloud is expected to provide another 5 gigawatts of computing capacity over the next five years. There is also an option to increase this later.
Anthropic’s valuation is also going up fast. It was around $350 billion earlier this year. Now, there are talks that investors are ready to value it much higher, possibly close to $800 billion. The company is also said to be preparing for an IPO, which could happen later this year.
