Quick overview

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Google will invest $10 billion in Anthropic PBC, with an additional $30 billion possibly to come. This will strengthen the partnership between two businesses that are competitors and partners in the race to develop artificial intelligence. Google’s stock increased by more than 1% on Friday, closing at $341.

 

According to Anthropic, Google has committed to investing $10 billion in cash at a $350 billion valuation, the same as its valuation in a February funding round, excluding the recent funds raised. Alphabet Inc. -owned business will support a major expansion of Anthropic’s computing capacity and invest an additional $30 billion if Anthropic meets performance goals, the startup announced on Friday

Anthropic has increased its fundraising efforts in response to the breakthrough success of Claude Code, an AI agent that accelerates software development. Earlier this week, the startup announced that it had received an additional $5 billion from Amazon at a $350 billion valuation, with the option to add  $20 billion over time. In February, Anthropic raised $30 billion.

Anthropic is a significant consumer of Google’s chips and cloud services, which the company is working to expand as its primary source of revenue, search advertising, matures. Over the next five years, Anthropic will receive five gigawatts of processing power from Google Cloud; several more gigawatts may be added.

The agreement is an extension of one that Anthropic, Google, and Broadcom Inc. announced earlier this month. Approximately 750,000 US homes can be powered at any time by a single gigawatt.

Google’s tensor processing units, or TPUs, are a rare and valuable resource since they are among the best substitutes for Nvidia’s chips