Anthropic Secures Massive Google Cloud Deal for AI Computing Power

Anthropic signs deal with Google Cloud to expand TPU chip capacity -- AI company expects to have over 1GW of processing power in 2026

Why build your own data centers when you can just as easily rent them? Google Cloud just announced that Anthropic has signed a major deal that will expand its use of the search giant's TPU chips for training future Claude models. According to the press release, this will allow the AI company to use up to a million TPUs from Google, as well as access other cloud services that it offers, giving Anthropic over a gigawatt of compute capacity by 2026. The company has already been using Google Cloud's services since 2023, when it first signed a strategic partnership to use the latter's infrastructure to train and run its models. Anthropic has since used Google Cloud's platforms, including Vertex AI and Google Cloud Marketplace, to offer its Claude models to customers, including design and collaboration platform Figma, cybersecurity firm Palo Alto Networks, and AI code editor Cursor, among others. "Anthropic and Google have a longstanding partnership, and this latest expansion will help us continue to grow the compute we need to define the frontier of AI," Anthropic CFO Krishna Rao said. "Our customers -- from Fortune 500 companies to AI-native startups -- depend on Claude for their most important work, and this expanded capacity ensures we can meet our exponentially growing demand while keeping our models a the cutting edge of the industry." It makes sense for Anthropic to stick with its current provider, Google Cloud, when expanding its capacity, because its models and the engineers behind them are already used to Google's system. Aside from that, it also offers great price-performance and efficiency, which will help with its $26 billion revenue target for 2026. "Anthropic's choice to significantly expand its usage of TPUs reflects the strong price-performance and efficiency its teams have seen with TPUs for several years," said Google Cloud CEO Thomas Kurian. "We are continuing to innovate and drive further efficiencies and increased capacity of our TPUs, building on our already mature AI accelerator portfolio, including our seventh-generation TPU, Ironwood." The Claude developer is seemingly taking a different route from its biggest competitors, including OpenAI and xAI, which are investing billions in their own infrastructure. For example, the former, aside from trying to develop its own chip, plans to build massive data centers in the U.S. and across the globe through Stargate. On the other hand, Elon Musk has already spent a lot of money on his Memphis Supercluster, with plans to spend billions more on an even bigger AI data center project, even though the company is expected to burn through $13 billion this year. Anthropic's move to stay away from massive infrastructure investments means reducing its risk of laying out a lot of cash for hardware that will take years to materialize. However, that also puts it at the mercy of hardware providers, making it harder for the company to scale and making it prone to price fluctuations, especially if it does not have long-term contracts in place that will protect it from such instability. But with the massive data center build-out happening all over the world, it seems that this is a risk that the company may be willing to take, so it can focus more on its core products.

Google, Anthropic seal gigawatt-scale TPU deal

Google and Anthropic have struck a deal that will see the AI upstart gain access to up to a million of the web giant's tensor processing units (TPUs) and involve "tens of billions of dollars." The two companies announced the deal on Thursday, with Anthropic pitching it as "expanded capacity" that the company will use to meet surging customer demand and allow it to conduct "more thorough testing, alignment research, and responsible deployment at scale." Google's take on the deal is that it will enable Anthropic to "train and serve the next generations of Claude models," and involves "additional Google Cloud services, which will empower its research and development teams with leading AI-optimized infrastructure for years to come." The search and ads giant claims the deal "represents the largest expansion of Anthropic's TPU usage to date" and says the AI upstart "chose TPUs due to their price-performance and efficiency, and the company's existing experience in training and serving its models with TPUs." Anthropic's announcement points out it's betting on companies other than Google. "Anthropic's unique compute strategy focuses on a diversified approach that efficiently uses three chip platforms - Google's TPUs, Amazon's Trainium, and Nvidia's GPUs," the statement explains. "This multi-platform approach ensures we can continue advancing Claude's capabilities while maintaining strong partnerships across the industry." Anthropic also stated: "We remain committed to our partnership with Amazon, our primary training partner and cloud provider, and continue to work with the company on Project Rainier, a massive compute cluster with hundreds of thousands of AI chips across multiple U.S. data centers." AI infrastructure announcements nearly always feature enormous numbers and breathless enthusiasm about how the tech will improve everything ... but little detail about how players will pay for, and profit from, the billions spent on giant chip farms. Anthropic's news departs from that script a little by mentioning that it "now serves more than 300,000 business customers, and our number of large accounts - customers that each represent more than $100,000 in run-rate revenue - has grown nearly 7x in the past year." The company didn't say how many of those $100k customers it has on the books, but reportedly plans to generate up to $26 billion of annual revenue by 2026. By way of comparison, HPE booked $30 billion in revenue in its FY 2024, while Google's parent company Alphabet generated $350 billion in revenue last year. ®

Anthropic, Google in Talks on Cloud Deal Worth Tens of Billions

Anthropic PBC is in discussions with Alphabet Inc.'s Google about a deal that would provide the artificial intelligence company with additional computing power valued in the high tens of billions of dollars, according to people familiar with the matter. The plan, which has not been finalized, involves Google providing cloud computing services to Anthropic, according to the people, who asked not to be named because the information is private. Google is a previous investor in, and cloud provider for, Anthropic.

Anthropic and Google Cloud strike blockbuster AI chips deal

Cristina Criddle in San Francisco and Rafe Rosner-Uddin in London Anthropic has reached a deal to secure access to 1mn Google Cloud chips to train and run its artificial intelligence models, increasing its ties to one of its largest investors. Google, which has invested more than $3bn in Anthropic, will bring more than a gigawatt of AI computing capacity online for the start-up next year using its custom chips known as Tensor Processing Units, or TPUs. Anthropic said the deal was worth tens of billions of dollars, but would not give a specific estimate. "Anthropic and Google have a long-standing partnership, and this latest expansion will help us continue to grow the compute we need to define the frontier of AI," said Krishna Rao, Anthropic's chief financial officer. "This expanded capacity ensures we can meet our exponentially growing demand while keeping our models at the cutting edge of the industry," he added. The agreement follows a flurry of deals by Anthropic's chief rival OpenAI to secure chips and computing capacity from Nvidia, AMD, Broadcom, Oracle and Google, estimated to be worth about $1.5tn. The circular arrangements between companies that act as suppliers, investors and customers of each other, combined with booming AI valuations, have added to concerns about a bubble in the sector. AI model developers have accelerated their fundraising and dealmaking for fear of falling behind in the arms race to secure enough computing power to remain competitive and meet customer demand. Anthropic raised $13bn during a funding round that closed in September, lifting its valuation to $183bn. It remains dwarfed by OpenAI's $500bn valuation. San Francisco-based Anthropic, which makes the Claude chatbot, uses three different chip platforms to train and run its AI systems: Amazon's Trainium, Nvidia's GPUs and Google's TPUs. The start-up said the diversified approach meant "we can continue advancing Claude's capabilities while maintaining strong partnerships across the industry". The arrangement pits Amazon, Nvidia and Google against each other in the competition for huge contracts to supply computing power. "Anthropic's choice to significantly expand its usage of TPUs reflects the strong price-performance and efficiency its teams have seen with TPUs for several years," Thomas Kurian, chief executive at Google Cloud, said in a statement. Amazon is the start-up's "primary" cloud provider and a large investor in the company. It has invested $8bn in Anthropic and is building a 2.2GW data centre cluster in New Carlisle, Indiana, to help train its AI models. Earlier this year it weighed investing more in the start-up to deepen its relationship with the model developer, the Financial Times reported. Anthropic said that it remained committed to its partnership with Amazon.

Anthropic's Google Cloud deal includes 1 million TPUs and 1 GW of capacity in 2026

Anthropic and Google officially announced their cloud partnership Thursday, a deal that gives the artificial intelligence company access to up to one million of Google's custom-designed Tensor Processing Units, or TPUs. The deal, which is worth tens of billions of dollars, is the company's largest TPU commitment yet and is expected to bring well over a gigawatt of AI compute capacity online in 2026. Industry estimates peg the cost of a 1-gigawatt data center at around $50 billion, with roughly $35 billion of that typically allocated to chips. While competitors tout even loftier projections -- OpenAI's 33-gigawatt "Stargate" chief among them -- Anthropic's move is a quiet power play rooted in execution, not spectacle. Founded by former OpenAI researchers, the company has deliberately adopted a slower, steadier ethos, one that is efficient, diversified, and laser-focused on the enterprise market.

Anthropic inks multibillion-dollar deal with Google for AI chips

SAN FRANCISCO (AP) -- Artificial intelligence company Anthropic has signed a multibillion-dollar deal with Google to acquire more of the computing power needed for the startup's chatbot, Claude. Anthropic said Thursday the deal will give it access to up to 1 million of Google's AI computer chips and is "worth tens of billions of dollars and is expected to bring well over a gigawatt of capacity online in 2026." A gigawatt, when used in reference to a power plant, is enough to power roughly 350,000 homes, according to the U.S. Energy Information Administration. Google calls its specialized AI chips Tensor Processing Units, or TPUs. Anthropic's AI systems also run on chips from Nvidia and the cloud computing division of Amazon, Anthropic's first big investor and its primary cloud provider. The privately held Anthropic, founded by ex-OpenAI leaders in 2021, last month put its value at $183 billion after raising another $13 billion in investments. Its AI assistant Claude competes with OpenAI's ChatGPT and others in appealing to business customers using it to assist with coding and other tasks.

Anthropic signs multi-billion dollar Google deal that gives it access to a million TPUs

Amazon remains Anthropic's "primary training partner and cloud provider" Anthropic has signed a multi-billion dollar deal with Google which will see the AI firm gain up to one million Google Cloud tensor processing units (TPUs) for training and running its large language models (LLMs). The deal, worth "tens of billions of dollars" according to Anthropic, will mean the company could have well over a gigawatt of compute capacity by 2026. The expansion comes after a successful year for Anthropic, which has seen the number of customers worth $100,000+ in run-rate revenue grow nearly 7x in the past year thanks to the ongoing AI boom. Anthropic CFO Krishna Rao notes the move is a continuation of the partnership between it and Google Cloud, which was likely chosen because of its price performance and energy efficiency - not to mention the existing positive relationship between the two. Because of the power delivery design of Google's TPUs, they're typically more power-efficient than Nvidia's GPUs, which are synonymous with other AI tech such as Anthropic competitor OpenAI. Such a large deal is probably a good sign for Google, then, which wants to challenge Nvidia's market dominance. "We are continuing to innovate and drive further efficiencies and increased capacity of our TPUs, building on our already mature AI accelerator portfolio, including our seventh generation TPU, Ironwood," Google Cloud CEO Thomas Kurian explained. However, Google isn't Anthropic's only partner. Nvidia's GPUs and Amazon's Trainium also play an important role in the company's multi-vendor strategy, and indeed Amazon remains Anthropic's "primary training partner and cloud provider."

Anthropic inks multibillion-dollar deal with Google for AI chips

Artificial intelligence company Anthropic has signed a multibillion-dollar deal with Google to acquire more of the computing power needed for the startup's chatbot, Claude. Anthropic said Thursday the deal will give it access to up to 1 million of Google's AI computer chips and is "worth tens of billions of dollars and is expected to bring well over a gigawatt of capacity online in 2026." A gigawatt, when used in reference to a power plant, is enough to power roughly 350,000 homes, according to the U.S. Energy Information Administration. Google calls its specialized AI chips Tensor Processing Units, or TPUs. Anthropic's AI systems also run on chips from Nvidia and the cloud computing division of Amazon, Anthropic's first big investor and its primary cloud provider. The privately held Anthropic, founded by ex-OpenAI leaders in 2021, last month put its value at $183 billion after raising another $13 billion in investments. Its AI assistant Claude competes with OpenAI's ChatGPT and others in appealing to business customers using it to assist with coding and other tasks.

Anthropic announces massive AI chip deal with Google

San Francisco (United States) (AFP) - Artificial intelligence giant Anthropic said Thursday it was expanding its use of Google cloud computing and specialized chips in a deal worth tens of billions of dollars. The arrangement will include Anthropic buying as many as one million Tensor Processing Units (TPUs), which are integrated circuits custom-designed by Google, according to the San Francisco-based startup. The expansion promises to let Anthropic bring more than a gigawatt of new computing power online by the end of 2026, enabling it to meet "exponentially growing demand" for its Claude AI models, chief financial officer Krishna Rao said in a statement. Anthropic said it has more than 300,000 business customers. Anthropic was created in early 2021 by former OpenAI staff who felt their employer, led by CEO Sam Altman, was not doing enough to control and prevent the potentially harmful effects of its models. Backed by Amazon, it quickly joined the major players in generative AI that embarked on a frantic race after the arrival of ChatGPT from OpenAI in November 2022, with new models being released at a furious pace with ever-expanding capabilities. While trailing OpenAI in terms of users and name recognition, Anthropic had been considered for several months the top performer in generative AI for computer coding. Google meanwhile has been investing heavily in AI as it vies with OpenAI, Microsoft, Amazon and others to lead with the technology. The processing units compete with Nvidia's keenly sought-after GPUs. "Anthropic's choice to significantly expand its usage of TPUs reflects the strong price performance and efficiency its teams have seen with TPUs for several years," said Google Cloud chief Thomas Kurian. "We are continuing to innovate and drive further efficiencies and increased capacity of our TPUs." New model Anthropic last month launched its latest generative AI model, Claude Sonnet 4.5, which it says is the world's best for computer programming. Anthropic's new release is also touted as the most sophisticated for applications that allow an AI assistant to use a computer as a human would. Anthropic said early this month that it will open an office in India next year, as global generative AI players seek inroads into the world's most populous country. Demand for AI tools and solutions has surged in India -- projected to have more than 900 million internet users by year's end -- driven by growing adoption by both businesses and individuals. Anthropic is valued at $183 billion, while OpenAI's valuation has reportedly soared after a private share sale to $500 billion, which would make it the world's most valuable startup.

Anthropic to Use 1 Million Google TPUs | AIM

The expansion is valued at 'tens of billions of dollars,' with an expected capacity of over a gigawatt coming online in 2026. Anthropic has announced plans to expand its use of Google Cloud services, including deploying one million Tensor Processing Units (TPUs). This expansion, valued at 'tens of billions of dollars,' with an expected capacity of over a gigawatt coming online in 2026. "Anthropic's choice to significantly expand its usage of TPUs reflects the strong price-performance and efficiency its teams have seen with TPUs for several years," said Thomas Kurian, CEO at Google Cloud. This expansion indicates a long-standing partnership between the two companies that started in early 2023, involving the use of Google's TPUs and cloud services for training and deploying AI models. In addition to TPUs, Anthropic also uses Amazon's Trainium chips, alongside NVIDIA's GPUs. "This multi-platform approach ensures we can continue advancing Claude's capabilities while maintaining strong partnerships across the industry," Anthropic stated. The expanded compute capacity will assist Anthropic in meeting the ongoing demand for its Claude models, particularly in the business and enterprise sectors. The company reported serving over 300,000 business customers, and the number of large accounts -- those generating more than $100,000 in annual revenue -- has increased nearly sevenfold in the past year. Over the past few months, Anthropic has revealed significant updates to its Claude model lineup, including the launch of Claude 4.5 Sonnet, 4.5 Haiku, and the larger 4.1 Opus. TPUs are hardware systems developed by Google specifically for AI tasks. These chips are accessible via Google Cloud services, and the company revealed that they are used internally for training and deploying the Gemini AI models. Recently, Google revealed that its latest Gemini 2.5 models were trained on a massive cluster of Google's fifth-generation TPUs. Google's latest TPU, the Ironwood, marks its 7th iteration. Additionally, Google has been involved in various funding efforts for Anthropic, and a report from The New York Times earlier this year stated that it owns 14% of Anthropic, citing legal findings. Besides Anthropic, Apple was another prominent company that used Google's TPUs for AI workloads. In 2024, Apple announced it used 8,192 TPU v4 chips within Google Cloud to train its 'Apple Foundation Model', a large language model supporting its AI projects.

Anthropic strikes multibillion-dollar deal with Google to access a million TPUs - SiliconANGLE

Anthropic strikes multibillion-dollar deal with Google to access a million TPUs Google LLC has struck a deal with the artificial intelligence startup Anthropic PBC that could be worth tens of billions of dollars. The deal will give Anthropic access to up to one million of Google Cloud's tensor processing units or TPUs, which it wants to use to train and run large language models such as Claude. The company, which is the closest independent competitor to OpenAI, will also use Google's cloud services, it said. Anthropic said in an announcement today that it has chosen Google's TPUs because of their price performance and efficiency, and also because of its previous positive experience with using the chips. The companies' partnership dates back to 2023, and the new deal will help the AI company to "continue to grow the compute we need to define the frontier of AI," said its Chief Financial Officer Krishna Rao. The companies didn't talk about numbers, but it's likely that the deal will bring Google tens of billions in revenue over the next few years. Anthropic said it will gain access to well over a gigawatt of compute capacity by 2026, and experts peg the average cost of that much computing power at about $50 billion per year. AI companies have been scrambling to secure access to the data center resources they need to power their LLMs. This year, OpenAI has struck multiple deals with companies, including Nvidia Corp., Advanced Micro Devices Inc. and Broadcom Inc., to secure access to their chips. It's also partnering with Oracle Corp. and SoftBank Group Corp. on the ambitious Stargate initiative, which aims to bring an incredible 33 gigawatts online in the next few years. Though Anthropic's deal with Google is smaller, it's a strong validation of the TPUs, which are a unique asset for the cloud provider. Google's TPUs reportedly are more power-efficient because they use a vertical power delivery system, whereas Nvidia's graphics processing units rely on lateral power delivery. Google works with Broadcom to design and manufacture the TPUs, but there is talk of a deal with Taiwan-based MediaTek Inc., which could further reduce the cost of producing them. Google doesn't just sell TPU capacity to cloud customers. It also uses them extensively to power its own AI services, and it's believed to be a huge business. In a recent analysis, D.A. Davidson suggested that if Google were to spin off the TPU unit and its AI research organization DeepMind, those two entities could be worth as much as $900 billion. Anthropic's deal with Google does raise some interesting questions about the model maker's ongoing relationship with Amazon Web Services Inc. Like Google, Amazon is a major investor in Anthropic and provides the company with the vast majority of its AI processors, but in recent months some analysts have questioned the competitiveness of its chips. In a note to clients last week, Jeffries analyst Blayne Curtis suggested that Anthropic's growing use of Google's TPUs doesn't reflect well on Amazon's specialized Trainium processors. This week, UBS analyst Karl Keirstead wrote that there are signs Anthropic could shift toward Google as its primary compute provider. Still, Amazon retains a much larger stake in Anthropic. While Google has invested $3 billion in the AI startup to date, Amazon has funded it to the tune of $8 billion, and is still considered to be its primary source of cloud computing infrastructure. Anthropic has previously said that Project Rainier, a custom-built supercomputer designed to power its Claude LLMs, runs exclusively on Amazon's Trainium 2 chips. For its part, Anthropic insisted that it remains "committed to our partnership with Amazon." It noted that AWS remains its primary training partner and cloud provider, and will continue to work with it on Project Rainier. If anything, the deal simply shows that Anthropic is pursuing a sensible multicloud strategy, using a combination of Amazon's Trainium chips, Google's TPUs and Nvidia's GPUs. By not relying on a single provider, the company's services are much more resilient, as we saw earlier this week when Claude remained online, unaffected by the recent AWS cloud outage that took out many other service providers. Anthropic's strategy is further justified by its explosive growth this year. The company now has an annual revenue run rate approaching $7 billion, and Claude is used by more than 300,000 businesses globally, up 300 times in the last two years. Moreover, large customers that deliver at least $100,000 per year in revenue have increased almost sevenfold in the past year. The company's agentic coding assistant Claude Code is also doing very well, generating more than $500 million in annual revenue within two months of its launch.

Anthropic inks multibillion-dollar deal with Google for AI chips

SAN FRANCISCO -- SAN FRANCISCO (AP) -- Artificial intelligence company Anthropic has signed a multibillion-dollar deal with Google to acquire more of the computing power needed for the startup's chatbot, Claude. Anthropic said Thursday the deal will give it access to up to 1 million of Google's AI computer chips and is "worth tens of billions of dollars and is expected to bring well over a gigawatt of capacity online in 2026." A gigawatt, when used in reference to a power plant, is enough to power roughly 350,000 homes, according to the U.S. Energy Information Administration. Google calls its specialized AI chips Tensor Processing Units, or TPUs. Anthropic's AI systems also run on chips from Nvidia and the cloud computing division of Amazon, Anthropic's first big investor and its primary cloud provider. The privately held Anthropic, founded by ex-OpenAI leaders in 2021, last month put its value at $183 billion after raising another $13 billion in investments. Its AI assistant Claude competes with OpenAI's ChatGPT and others in appealing to business customers using it to assist with coding and other tasks.

Anthropic inks multibillion-dollar deal with Google for AI chips

SAN FRANCISCO (AP) -- Artificial intelligence company Anthropic has signed a multibillion-dollar deal with Google to acquire more of the computing power needed for the startup's chatbot, Claude. Anthropic said Thursday the deal will give it access to up to 1 million of Google's AI computer chips and is "worth tens of billions of dollars and is expected to bring well over a gigawatt of capacity online in 2026." A gigawatt, when used in reference to a power plant, is enough to power roughly 350,000 homes, according to the U.S. Energy Information Administration. Google calls its specialized AI chips Tensor Processing Units, or TPUs. Anthropic's AI systems also run on chips from Nvidia and the cloud computing division of Amazon, Anthropic's first big investor and its primary cloud provider. The privately held Anthropic, founded by ex-OpenAI leaders in 2021, last month put its value at $183 billion after raising another $13 billion in investments. Its AI assistant Claude competes with OpenAI's ChatGPT and others in appealing to business customers using it to assist with coding and other tasks.

Google in talks with Anthropic for a cloud deal worth tens of billions

The deal would provide Anthropic with large-scale cloud computing resources for its AI operations. Google is reportedly in discussions with artificial intelligence company Anthropic for a cloud computing deal. The potential agreement, valued in the high tens of billions of dollars, would provide Anthropic with significant cloud resources for its operations. The proposed arrangement aligns with Anthropic's financial targets. A Reuters report from mid-October indicated that the AI firm aims to achieve a $9 billion annual revenue run rate by the end of 2025. Access to extensive cloud infrastructure is considered a key factor in supporting such ambitious growth trajectories within the artificial intelligence field. Inside the AWS outage: How one failure rippled across the global economy A partnership would supply Anthropic with the substantial cloud computing power required to advance its AI development and overall expansion initiatives. For Google, the deal would expand its functional role and presence within the competitive AI sector by securing a major client for its cloud services. The disclosure of these talks has had a measurable market impact. News surrounding the potential agreement between the two companies was followed by an increase in the price of Google's stock, indicating a positive investor response to the prospective partnership.

Anthropic Inks Multibillion-Dollar Deal With Google for AI Chips

SAN FRANCISCO (AP) -- Artificial intelligence company Anthropic has signed a multibillion-dollar deal with Google to acquire more of the computing power needed for the startup's chatbot, Claude. Anthropic said Thursday the deal will give it access to up to 1 million of Google's AI computer chips and is "worth tens of billions of dollars and is expected to bring well over a gigawatt of capacity online in 2026." A gigawatt, when used in reference to a power plant, is enough to power roughly 350,000 homes, according to the U.S. Energy Information Administration. Google calls its specialized AI chips Tensor Processing Units, or TPUs. Anthropic's AI systems also run on chips from Nvidia and the cloud computing division of Amazon, Anthropic's first big investor and its primary cloud provider. The privately held Anthropic, founded by ex-OpenAI leaders in 2021, last month put its value at $183 billion after raising another $13 billion in investments. Its AI assistant Claude competes with OpenAI's ChatGPT and others in appealing to business customers using it to assist with coding and other tasks.

Alphabet's Google, Anthropic Mulling Multibillion-Dollar Cloud Deal, Report Says

OpenAI rival Anthropic recently raised $13 billion, giving it a valuation of $183 billion. Google could soon be closing in on a cloud computing deal with AI startup Anthropic worth tens of billions of dollars. The proposal under consideration would allow OpenAI rival and Claude chatbot maker Anthropic access to Google's tensor processing units, which are chips designed to speed up machine learning workloads, Bloomberg reported. Anthropic and Alphabet did not respond to Investopedia's requests for comment in time for publication. The talks are in the early stages and details could change, the report noted. Last month, Anthropic announced it had raised $13 billion in funding from a large group of investors, giving it a valuation of $183 billion. It said the money will expand its capacity to "meet growing enterprise demand, deepen our safety research, and support international expansion as we continue building reliable, interpretable, and steerable AI systems." Shares of Google parent Alphabet (GOOGL) were up about 1% in recent trading. They've added roughly a third of their value in 2025 so far.

Anthropic Strikes Major Compute Deal With Google, Echoing OpenAI's Chip Alliances

Google's latest deal with Anthropic highlights Silicon Valley's web of A.I. alliances and the race to secure massive computing power. The latest sign of the A.I. industry's unrelenting hunt for computing power comes from an expanded agreement between Anthropic and Google -- a deal that, like several others struck in recent months, underscores the rise of circular arrangements across Silicon Valley. Under the new agreement, Google will provide Anthropic with well over one gigawatt of computing capacity by 2026, the companies announced yesterday (Oct. 23). Sign Up For Our Daily Newsletter Sign Up Thank you for signing up! By clicking submit, you agree to our <a href="http://observermedia.com/terms">terms of service</a> and acknowledge we may use your information to send you emails, product samples, and promotions on this website and other properties. You can opt out anytime. See all of our newsletters Anthropic noted that the deal is worth "tens of billions of dollars" but didn't provide an exact figure. The partnership further deepens the startup's ties with Google, which has already invested about $3 billion in Anthropic and is expected to supply the company with up to 1 million of its custom A.I. chips, called tensor processing units (TPUs). Such partnerships are increasingly essential as leading A.I. startups scale at a breakneck pace. Anthropic, which now serves over 300,000 business customers, said the number of clients generating more than $100,000 in annual revenue has grown nearly sevenfold in the past year. "Anthropic and Google have a longstanding partnership, and this latest expansion will help us continue to grow the compute we need to define the frontier of A.I.," said Krishna Rao, Anthropic's chief financial officer, in a statement. Founded in 2021 by CEO Dario Amodei and several former OpenAI employees, Anthropic positioned itself as a safety-focused alternative to early A.I. players. Best known for its chatbot Claude, the company recently hit a $183 billion valuation and is reportedly on track to generate $9 billion in annual revenue. Despite its closer ties with Google, Anthropic emphasized that it remains committed to its "primary training partner," Amazon, which has invested $8 billion in exchange for providing compute through its chips and A.I. cluster Project Rainier. The company also continues to rely on Nvidia's GPUs as part of what it calls a "multi-platform approach." Anthropic said it will keep investing in additional compute capacity as demand grows. Anthropic's mutually beneficial partnerships with Google and Amazon reflect a broader trend: a broader industry trend: a growing web of interconnected A.I. partnerships between model developers and compute providers, each investing in and purchasing one another's technology. OpenAI has been at the forefront of this shift, announcing a flurry of major deals in recent months, including an agreement with AMD to access six gigawatts of computing power, a deal with Nvidia to access 10 gigawatts of compute, and a $300 billion, five-year partnership with Oracle. The growing prevalence of such circular arrangements has raised some eyebrows in Silicon Valley, recalling the speculative interdependencies of the dot-com bubble and its eventual crash. But unlike that era, today's A.I. spending is bolstered by stronger capitalization and clearer monetization potential, said Stephanie Aliaga, global market strategist for JPMorgan Chase, in a blog post earlier this month. Still, Aliaga cautioned that the concern isn't misplaced. "The scale of spending is enormous, the pace unprecedented, and some assumptions around ROI, like the useful lives of assets, remain open questions," she said. "History reminds us that enthusiasm can run ahead of reality," she wrote.

Anthropic announces massive AI chip deal with Google

AI firm Anthropic will greatly expand its use of Google Cloud and TPUs in a multibillion-dollar deal, adding massive computing power by 2026. Backed by Amazon, Anthropic aims to meet rising demand for its Claude AI models, grow globally, and challenge OpenAI, especially in coding and generative AI performance. Artificial intelligence giant Anthropic said Thursday it was expanding its use of Google cloud computing and specialized chips in a deal worth tens of billions of dollars. The arrangement will include Anthropic buying as many as one million Tensor Processing Units (TPUs), which are integrated circuits custom-designed by Google, according to the San Francisco-based startup. The expansion promises to let Anthropic bring more than a gigawatt of new computing power online by the end of 2026, enabling it to meet "exponentially growing demand" for its Claude AI models, chief financial officer Krishna Rao said in a statement. Anthropic said it has more than 300,000 business customers. Anthropic was created in early 2021 by former OpenAI staff who felt their employer, led by CEO Sam Altman, was not doing enough to control and prevent the potentially harmful effects of its models. Backed by Amazon, it quickly joined the major players in generative AI that embarked on a frantic race after the arrival of ChatGPT from OpenAI in November 2022, with new models being released at a furious pace with ever-expanding capabilities. While trailing OpenAI in terms of users and name recognition, Anthropic had been considered for several months the top performer in generative AI for computer coding. Google meanwhile has been investing heavily in AI as it vies with OpenAI, Microsoft, Amazon and others to lead with the technology. The processing units compete with Nvidia's keenly sought-after GPUs. "Anthropic's choice to significantly expand its usage of TPUs reflects the strong price performance and efficiency its teams have seen with TPUs for several years," said Google Cloud chief Thomas Kurian. "We are continuing to innovate and drive further efficiencies and increased capacity of our TPUs." New model Anthropic last month launched its latest generative AI model, Claude Sonnet 4.5, which it says is the world's best for computer programming. Anthropic's new release is also touted as the most sophisticated for applications that allow an AI assistant to use a computer as a human would. Anthropic said early this month that it will open an office in India next year, as global generative AI players seek inroads into the world's most populous country. Demand for AI tools and solutions has surged in India -- projected to have more than 900 million internet users by year's end -- driven by growing adoption by both businesses and individuals. Anthropic is valued at $183 billion, while OpenAI's valuation has reportedly soared after a private share sale to $500 billion, which would make it the world's most valuable startup.

Anthropic Has Turned Up the Heat on NVIDIA with the Latest Google TPU Deal -- Integrating the ASICs Jensen Probably Fears Most

Well, Anthropic's latest deal with Google Cloud is probably something we should've seen coming, considering the firm's enmity with NVIDIA, and how Jensen sees Google's TPUs as a 'formidable' ASIC rival. For those unaware, Anthropic has recently announced its intention to expand its computing power by entering into a deal with Google Cloud, which will focus on employing up to one million TPU chips, marking the largest deal secured by Google for its custom AI chips. Anthropic, in this deal alone, would have access to "over a gigawatt of capacity" as soon as next year, and this is one of the largest ventures in the industry that doesn't involve tech stacks from both NVIDIA and AMD, which is why it is a massive deal for compute providers and AI giants. This represents the largest expansion of Anthropic's TPU usage to date. Anthropic will have access to up to one million TPU chips, as well as additional Google Cloud services, which will empower its research and development teams with leading AI-optimized infrastructure for years to come. Anthropic chose TPUs due to their price-performance and efficiency, and the company's existing experience in training and serving its models with TPUs. This isn't exactly the first time Anthropic has collaborated with Google Cloud, as the firm has been utilizing the CSP's services since 2023. Therefore, expanding compute power on the same stack does seem a bit sensible. However, there's another interesting angle to this story. We have often seen Anthropic calling out NVIDIA's CEO, Jensen Huang, for a variety of issues, including AI chip smuggling into China. Similarly, Jensen has criticized Anthropic for the firm's 'closed-source' nature, as seen in models like Claude. Here's another interesting twist. We know that ASICs pose a challenge to NVIDIA, and out of all the solutions available, Google's TPUs are seen as a more aggressive alternative to Team Green's hardware portfolio. And, when you consider that Anthropic has become the largest external TPU customer, this certainly indicates the growing rivalry with NVIDIA. But yet again, this is an opinion, and not exactly confirmed by either party; however, here's what Jensen had to say about Google's TPUs at the BG2 podcast: To that point ... one of the biggest key debates ... is this question of GPUs versus ASICs, Google's TPUs, Amazon's Trainium. Google... They started TPU1 before everything started. ... The challenge for people who are building ASICs. Of course, NVIDIA remains the dominant compute provider, securing 'multi-GW' deals with the likes of OpenAI and Oracle. However, Anthropic doesn't seem too interested in what Jensen has to offer, whether it is due to the enmity between the two, or perhaps Google Cloud seems like a better option. Regardless of this debate, the winner in this situation is defintely the advancements we are seeing in the AI industry.

Google's new deal with Anthropic increases potential for more TPU clients: HSBC

Google's (NASDAQ:GOOG)(NASDAQ:GOOGL) freshly inked deal to supply Anthropic (ANTHRO) with up to 1M of its in-house Ironwood TPUs for artificial intelligence applications opens the door for more such agreements in the future, according to HSBC. The fact that the TPUs HSBC expects Google's deal to drive $10bn of cloud revenue uplift (+13.5%), with potential for further upside depending on additional client leases. Because renting in-house chips is higher margin than using externally sourced chips, boosting Google's profitability versus rivals. Google is the only Western cloud provider with the latest in-house chip in production now, positioning it favorably while rival projects are delayed, creating opportunities for more deals.

Anthropic, Google in talks on cloud deal worth tens of billions: Report

The deal, which has not been finalized yet, includes Alphabet's Google providing cloud computing services to Anthropic, according to the report. Alphabet's stock gained 2.3% in trading after the bell. AI startup Anthropic is in talks with Google to secure additional computing power valued in the high tens of billions of dollars, Bloomberg News reported on Tuesday, citing people familiar with the matter. The deal, which has not been finalized yet, includes Alphabet's Google providing cloud computing services to Anthropic, according to the report. Alphabet's stock gained 2.3% in trading after the bell. Google declined to comment, while Anthropic did not immediately respond to a request for comment. Anthropic, which counts Google and Amazon.com as its major investors, is the creator of the Claude chatbot and competes with OpenAI's ChatGPT for AI dominance. Anthropic is projecting to more than double and potentially nearly triple its annualized revenue run rate next year, fueled by the rapid adoption of its enterprise products, Reuters had exclusively reported last week. The company is on track to meet an internal goal of $9 billion in annual revenue run rate - a calculation of annual revenue extrapolated from the current sales pace - by the end of 2025.

Anthropic and Google Negotiating Multibillion-Dollar Computing Partnership | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. Google has invested about $3 billion in Anthropic to date and remains one of its key cloud providers. A larger deal could extend Google's reach in the generative AI infrastructure market, where computing capacity and chip availability now determine who can train and deploy the most advanced models. The potential partnership comes as cloud giants and AI developers increasingly lock in long-term supply agreements to manage demand for high-performance hardware. Anthropic's rapid ascent reflects the growing economics of AI scale. The company recently raised $13 billion, bringing its valuation to $183 billion, as reported by PYMNTS. Founded in 2021 by former OpenAI researchers, Anthropic's Claude models have become central to enterprise adoption, offering multimodal reasoning and compliance tools for regulated industries. In 2025, the company introduced Claude Sonnet 4.5 and its Claude Agent SDK, extending its platform into developer tools and automation part of what PYMNTS called a strategy to turn Claude into an ecosystem. With these releases, Anthropic is positioning its models not just as chat interfaces but as infrastructure for building AI-native applications. The SDK allows developers to embed Claude's reasoning capabilities into existing enterprise systems, while Sonnet 4.5 enhances multimodal understanding and real-time task execution. At the same time, PYMNTS reported that Microsoft has been exploring deeper ties with Anthropic as it reevaluates its reliance on OpenAI, signaling how cloud alliances are shifting as compute demands grow. Amazon has already committed up to $8 billion to Anthropic and counts the company among the largest users of its custom AI chips. The talks with Google would further cement Anthropic's multi-cloud approach, ensuring redundancy and access to the most advanced silicon. For Google, securing Anthropic as a long-term client could strengthen its position against Amazon and Microsoft in the cloud AI supply chain.

Anthropic Expands Partnership with Google for Next-Gen Claude AI

Anthropic Strengthens Google Partnership to Build Smarter, Faster, and More Efficient AI Models Anthropic, the company that created the Claude AI chatbot, has taken its collaboration with Google to new heights by using Google's custom Tensor Processing Units (TPUs) to power its next-generation AI models. The partnership allows Anthropic to use up to 1 million TPUs, significantly boosting its training capacity for large-scale AI systems. The agreement indicates a global trend toward more powerful chips as the AI industry grows rapidly.

Anthropic announces massive AI chip deal with Google

Artificial intelligence giant Anthropic said Thursday it was expanding its use of Google cloud computing and specialized chips in a deal worth tens of billions of dollars. The arrangement will include Anthropic buying as many as one million Tensor Processing Units (TPUs), which are integrated circuits custom-designed by Google, according to the San Francisco-based startup. The expansion promises to let Anthropic bring more than a gigawatt of new computing power online by the end of 2026, enabling it to meet "exponentially growing demand" for its Claude AI models, chief financial officer Krishna Rao said in a statement. Anthropic said it has more than 300,000 business customers. Anthropic was created in early 2021 by former OpenAI staff who felt their employer, led by CEO Sam Altman, was not doing enough to control and prevent the potentially harmful effects of its models. Backed by Amazon, it quickly joined the major players in generative AI that embarked on a frantic race after the arrival of ChatGPT from OpenAI in November 2022, with new models being released at a furious pace with ever-expanding capabilities. While trailing OpenAI in terms of users and name recognition, Anthropic had been considered for several months the top performer in generative AI for computer coding. Google meanwhile has been investing heavily in AI as it vies with OpenAI, Microsoft, Amazon and others to lead with the technology. The processing units compete with Nvidia's keenly sought-after GPUs. "Anthropic's choice to significantly expand its usage of TPUs reflects the strong price performance and efficiency its teams have seen with TPUs for several years," said Google Cloud chief Thomas Kurian. "We are continuing to innovate and drive further efficiencies and increased capacity of our TPUs." Anthropic last month launched its latest generative AI model, Claude Sonnet 4.5, which it says is the world's best for computer programming. Anthropic's new release is also touted as the most sophisticated for applications that allow an AI assistant to use a computer as a human would. Anthropic said early this month that it will open an office in India next year, as global generative AI players seek inroads into the world's most populous country. Demand for AI tools and solutions has surged in India -- projected to have more than 900 million internet users by year's end -- driven by growing adoption by both businesses and individuals. Anthropic is valued at US$183 billion, while OpenAI's valuation has reportedly soared after a private share sale to US$500 billion, which would make it the world's most valuable startup.

Alphabet stock rises after Anthropic expands TPU chip usage By Investing.com

Investing.com -- Alphabet (NASDAQ:GOOGL) stock rose 1.15% in after-hours trading Thursday following news that AI company Anthropic will dramatically expand its use of Google Cloud's TPU chips, securing access to over one million of these specialized AI processors. The expanded partnership represents Anthropic's largest commitment to Google's Tensor Processing Units (TPUs) to date. Under the agreement, Anthropic will gain access to well over a gigawatt of computing capacity scheduled to come online in 2026, providing the AI company with the necessary resources to train and serve future generations of its Claude AI models. Anthropic, which initially formed a strategic partnership with Google Cloud in 2023, cited the price-performance ratio and efficiency of TPUs as key factors in its decision to expand usage. The company currently makes its Claude models available to businesses through Google Cloud's Vertex AI platform and Google Cloud Marketplace. "Anthropic's choice to significantly expand its usage of TPUs reflects the strong price-performance and efficiency its teams have seen with TPUs for several years," said Thomas Kurian, CEO at Google Cloud. Krishna Rao, CFO of Anthropic, noted that the expanded capacity would help meet "exponentially growing demand" for the company's AI models while maintaining their competitive edge. Currently, thousands of businesses utilize Anthropic's Claude models on Google Cloud, including Figma, Palo Alto Networks, and Cursor. The announcement confirmed rumored from earlier this week.

AI Alliance: Google Eyes Multi-Billion Cloud Collaboration With Anthropic

Google and AI startup Anthropic are in talks over a cloud deal reportedly worth tens of billions of dollars. This marks a major step in AI infrastructure growth, according to Bloomberg News. The rumored cloud partnership between Anthropic and Google highlights the rising demand for computing power in the AI industry. , supported by huge investments from Google and Amazon.com, created the Claude chatbot and competes with OpenAI's ChatGPT for AI dominance. The deal, which has not been finalized yet, reportedly includes Alphabet's Google providing cloud computing services to Anthropic. Both companies declined to comment on the deal talks. Google parent Alphabet Inc. witnessed a jump of 3.1% in after-hours trade following the news. This shows how closely the market is watching the growth opportunities in the cloud market. The tech giant, which has already invested approximately $3 billion in Anthropic, serves as both an investor and a cloud provider for the AI startup. A potential Anthropic-Google partnership would solidify Google Cloud's place in the AI spotlight. Meanwhile, Amazon.com Inc. has also invested billions in the AI firm and provided computing resources to it.

Alphabet stock rises on potential multibillion-dollar cloud deal with Anthropic By Investing.com

Investing.com -- Alphabet (NASDAQ:GOOG) stock rises on Wednesday after reports emerged that AI startup Anthropic is in talks with Google for a cloud computing deal potentially worth tens of billions of dollars. Shares of the tech giant gained 1.3% in premarket trading following a Bloomberg News report that Anthropic is negotiating to secure substantial cloud computing resources from Google Cloud. According to people familiar with the matter, the deal under discussion would be valued in the high tens of billions of dollars. The potential agreement would provide Anthropic with computing infrastructure from Google's cloud division. This development comes as major tech companies continue to invest heavily in artificial intelligence capabilities and infrastructure to support AI startups. Anthropic, known for its Claude AI assistant that competes with OpenAI's ChatGPT, has previously received significant investment from Google. The cloud computing resources would likely support Anthropic's ongoing development and scaling of its AI models. The negotiations highlight the growing competition among cloud providers to secure partnerships with leading AI companies, as these relationships can drive substantial long-term revenue growth in cloud services. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Anthropic Expands Google Cloud Partnership to Access 1 Million Chips

Anthropic is expanding its use of Google Cloud's TPU chips as it aims to grow its computing resources to train the next generations of its AI model Claude. Anthropic will have access to up to 1 million TPU chips through the deal, as well as additional Google Cloud services, it said Thursday. The AI giant said it chose TPUs for their price-performance and efficiency, as well as the company's existing experience in training and serving its models with TPUs. Anthropic first said in 2023 that it would work with Google Cloud to train models using its AI infrastructure. Anthropic also makes the models available to businesses through Google Cloud's Vertex AI platform and its Marketplace. Write to Katherine Hamilton at [email protected]

Anthropic to use 1 million Google Cloud TPU chips to train its Claude chatbot

(Reuters) -Anthropic said on Thursday it Claude models would be trained using up to one million of Google Cloud's tensor processing units, worth tens of billions of dollars. The deal underscores the immense computing demands of AI firms for training, deployment and continuous inference in generative AI, as they race to launch new products and features to stay ahead in a fiercely competitive market. To secure infrastructure swiftly, developers have been rushing into multi-billion dollar agreements. Alphabet's Google, also a backer of Anthropic, will provide additional cloud computing services to the startup behind the Claude chatbot. (Reporting by Juby Babu in Mexico City and Zaheer Kachwala in Bengaluru; Editing by Shilpi Majumdar and Anil D'Silva)