Anthropic weighs $50bn funding round for near $1tn valuation as revenue explodes to $45bn

Anthropic weighs deal for near $1tn valuation as revenue surges

Anthropic is weighing raising tens of billions of dollars this summer to fund a vast expansion in computing capacity, in a move that would catapult it past rival OpenAI to a valuation of almost $1tn. The Claude maker, which was valued at $380bn in February, has been fielding interest from investors including Dragoneer, General Catalyst and Lightspeed Venture Partners as its revenue continues to rise, according to five people with knowledge of the matter. Those people expect Anthropic's annualised revenue, which extrapolates full-year revenue based on recent weeks, to cross $45bn imminently -- a fivefold increase from $9bn at the end of last year. "People are ready to throw any dollar amount at Anthropic. It's just about when [Anthropic] want to pop their heads up and say 'we're ready'," said one investor in the company. The new round is expected to value Anthropic at about $900bn pre-money and to raise as much as $50bn, said three of the people. They added it was likely to close within two months. OpenAI was valued at $852bn post-money in March after it closed a record funding round of $122bn. Krishna Rao, Anthropic's chief financial officer, has been speaking with investors but has not yet agreed terms, and there is no guarantee that a deal will come together, they added. Investors are keen to build positions ahead of a blockbuster initial public offering expected as soon as the end of this year, said multiple people with direct knowledge. Existing backers of the company have been requesting allocation in the round despite Rao not formally having kicked off talks. Given the expected scale of the deal and its aspirations to be a public company, Anthropic is likely to favour companies with public as well as private investment experience, several people said. The start-up's Claude Code tool for software developers and Cowork product for less technical users have become hugely popular in recent months, helping Anthropic gain ground on OpenAI, especially for business clients. Anthropic is moving to build up a war chest to fund a massive increase in its computing capacity as it faces supply constraints that have impacted its ability to serve customers in recent weeks. The need for computing capacity will increase with a wider release of Anthropic's powerful new AI model, Mythos, which is currently available only to a small group of partners. The AI lab has struck deals with Elon Musk's SpaceXAI, Google, Broadcom and AWS in the past two months in an attempt to lock in a longer-term supply of computing power. Combined, those will add hundreds of billions of dollars to its costs in the coming years. "Anthropic has resolved the biggest bottleneck and potential source of weakness, which is compute," said one investor in the company. Rao had held off entertaining offers at a higher valuation while working on those deals as well as a new partnership with private equity firms, which was announced on Monday, said multiple people familiar with the CFO's thinking. OpenAI moved earlier to lock in data centre capacity, inking deals last autumn. The company will spend $50bn on computing resources this year, the company's president Greg Brockman said during court proceedings brought by Tesla boss Elon Musk on Tuesday. Anthropic and Lightspeed declined to comment. General Catalyst and Dragoneer did not immediately respond. Additional reporting by Ryan McMorrow in San Francisco. Data visualisation by Clara Murray

Anthropic reportedly agrees to pay Google $200 billion for chips and cloud access - Engadget

We learned earlier this month that Google and Anthropic had inked a deal that would grant the creator of the Claude AI models access to cloud servers and chips. Today, The Information reported that Anthropic has agreed to pay a staggering $200 billion to Google over the next five years. Contracts like this, or Anthropic's other recent multi-billion dollar arrangement with Amazon, now account for a ludicrous amount of money promised to some of the world's largest tech companies. The Information claims that deals with Anthropic and OpenAI are responsible for a revenue backlog of $2 trillion across Amazon, Google, Microsoft and Oracle. These cloud service providers have been early investors in the AI boom, gambling that the startups' need for their resources as they grow would yield lucrative dividends. So far, they've been correct. Previous projections estimated that server costs in 2026 could reach $45 billion for OpenAI and $20 billion for Anthropic. Similar moves have also happened at chipmakers like NVIDIA, which has made its own investments into OpenAI. These expensive circular deals are part of what's driving the current AI boom, but they aren't exactly a sustainable business practice. Data centers put a strain on limited resources and RAM shortages aren't expected to stop bringing prices up and sales down for related gadgets any time soon.

Anthropic in Talks to Raise Funding at a $950 Billion Valuation

The start-up, which recently released a powerful A.I. model called Mythos and is separately battling with the Pentagon, was previously valued at $380 billion. Anthropic, the high-flying artificial intelligence start-up, is in talks with investors to raise between $30 billion and $50 billion in new funding that would value it at up to $950 billion, people involved in the discussions said. The talks could fall apart, the people said, but if the financing is completed, Anthropic's valuation would jump to 2.5 times its valuation of $380 billion just three months ago. It would also put Anthropic's value higher than that of its rival OpenAI, which was valued at $852 billion in a fund-raising in March. A spokesman for Anthropic declined to comment. Bloomberg earlier reported on the funding talks. Investors have poured money into A.I. companies across Silicon Valley, where start-ups that did not exist a year ago continue to fetch eye-watering sums from venture capitalists eager to cash in on the craze. In the first three months of the year, A.I. companies shattered fund-raising records with a $297 billion haul, driven by enormous financing rounds for the largest A.I. firms that made up four of the five largest deals ever recorded. Even in the crowded A.I. environment, Anthropic stands out. The San Francisco company has made significant strides selling A.I. products like Claude Code, a tool that enables robots to write software autonomously, to businesses. Dario Amodei, Anthropic's chief executive, recently said the company had surged to a $30 billion revenue run rate, or the amount of money it expects to generate on an annual basis, and could grow 80 times as big this year. "I hope that 80-times growth doesn't continue because that's just crazy and it's too hard to handle," Mr. Amodei said at Anthropic's developer conference this month. "I'm hoping for some more normal numbers." Last month, Anthropic released a powerful new A.I. model, Mythos, which is so strong at identifying security vulnerabilities in software that it could create a cybersecurity "reckoning," the company said. Anthropic declined to release the model publicly, providing access to just a few organizations. Mythos has since set off global alarms as governments and others clamor to try the model. Mythos has complicated Anthropic's relationship with the U.S. government. The company recently tangled with the Department of Defense, which claimed that Anthropic was trying to dictate how to use A.I. in warfighting and labeled the start-up a security risk. Anthropic then sued the government. But since Mythos's release, the model's power has pushed some U.S. officials to try to mend the rift. Mr. Amodei met with White House officials last month for discussions that both sides described as "productive." Anthropic still faces challenges. The company is locked in competition with OpenAI, Google and xAI over consumer and enterprise products. To keep up with the pace of growth, Anthropic also continues striking deals with tech giants for new funding and for computing power to develop A.I. Last month, Google committed to invest as much as $40 billion in Anthropic, while Amazon agreed to invest as much as $25 billion. (The New York Times has sued OpenAI and Microsoft, claiming copyright infringement of news content related to A.I. systems. The two companies have denied the claims.)

Anthropic's C.E.O. Says It Could Grow by 80 Times This Year

The chief executive, Dario Amodei, said the rapid growth had exponentially increased the start-up's need for more computing power. Dario Amodei, the chief executive of Anthropic, said on Wednesday that his artificial intelligence company had planned for growing about 10 times as big this year, only to reach a growth rate that could make it 80 times as big this year instead. Mr. Amodei, 43, made his remarks at Anthropic's annual developer conference in San Francisco, where he and other executives gave a glimpse into the company's plans. Anthropic is one of the world's leading A.I. start-ups with its Claude chatbot and its popular A.I. coding tool, Claude Code, which people can pay to subscribe to. Last month, Anthropic said its annual revenue run rate had surpassed $30 billion, up from $9 billion at the end of 2025. At the conference, Mr. Amodei said Anthropic had been overwhelmed by the rate of growth, which has increased the company's need for computing power to deliver its A.I. products to customers. "I hope that 80-times growth doesn't continue because that's just crazy and it's too hard to handle," Mr. Amodei said. "I'm hoping for some more normal numbers." To obtain more computing power, Anthropic has signed a series of deals with industry giants. At the conference, Anthropic said it had sealed an agreement with Elon Musk's SpaceX to use all of the computing capacity from the rocket company's Colossus 1 data center in Memphis. The move gives Anthropic access to the computing power of more than 220,000 Nvidia A.I. chips, the company said, and opens the door to working with SpaceX to create A.I. data centers in space. Anthropic declined to disclose the terms of the deal. SpaceX did not respond to a request for comment. "As you saw today with the SpaceX compute deal, we're working as quickly as possible to provide more compute than we have in the past," Mr. Amodei said, using an industry term for computing power. He added that his company was working every day "to obtain even more compute" for users. With the SpaceX deal, Anthropic said, it can expand the amount of coding that some Claude Code subscribers can do before they hit a usage limit with the tool. Anthropic offers people different pricing depending on the amount of coding they want to do. Last month, Google, which has been a longtime investor in the start-up, committed to invest as much as another $40 billion in Anthropic. Amazon, another investor in Anthropic, agreed to invest as much as $25 billion.

Anthropic says it hit a $30 billion revenue run rate after 'crazy' 80x growth

Dario Amodei is not the kind of CEO who talks loosely about numbers. The Anthropic co-founder and chief executive, a former VP of research at OpenAI with a PhD in computational neuroscience from Princeton, has built a reputation for measured public statements -- particularly around the financial performance of a company that, until recently, disclosed almost nothing about its business. So when Amodei took the stage at Anthropic's Code with Claude developer conference on Wednesday and offered a genuinely striking piece of financial candor, the room paid attention. "We tried to plan very well for a world of 10x growth per year," Amodei said during a fireside chat with Anthropic's chief product officer, Ami Vora. "And yet we saw 80x. And so that is the reason we have had difficulties with compute." Anthropic had planned for tenfold growth. But revenue and usage increased 80-fold in the first quarter on an annualized basis, a rate Amodei described as "just crazy" and "too hard to handle." The number demands context. Annualized growth rates can overstate sustained performance -- a single strong quarter, extrapolated across a full year, can paint a picture that doesn't hold. Amodei knows this. But the underlying trajectory is not a mirage. Anthropic has crossed a $30 billion annualized revenue run rate, up sharply from roughly $9 billion at the end of 2025, and that growth is being driven largely by enterprise demand. The company's revenue trajectory has been relentless: $87 million run rate in January 2024, $1 billion by December 2024, $9 billion by end of 2025, $14 billion in February 2026, $19 billion in March, and $30 billion in April. For context: Salesforce took about 20 years to reach $30 billion in annual revenue. Anthropic did it in under three years from a standing start. Claude Code became the fastest-growing product in enterprise software history The growth story at Anthropic is, to a remarkable degree, a single-product story. Claude Code, the company's agentic AI coding tool launched publicly in mid-2025, has become the fastest-growing product in the company's history -- and, by several measures, one of the fastest-growing software products ever built. Claude Code hit $1 billion in annualized revenue within six months of launch, and the growth hasn't slowed down. By February 2026, the product was generating over $2.5 billion in run-rate revenue. The company also said Claude Code's weekly active users had doubled since January 1 and that business subscriptions had quadrupled since the start of 2026. The mechanics of the product are straightforward. Claude Code is not a chatbot that suggests snippets. It reads a codebase, plans a sequence of actions, executes them using real development tools, evaluates the result, and adjusts its approach. The developer sets the objective and retains control over what gets committed, but the execution loop runs independently. The average developer using Claude Code now spends 20 hours per week working with the tool. At Anthropic itself, the majority of code is now written by Claude Code. Engineers focus on architecture, product thinking, and continuous orchestration: managing multiple agents in parallel, giving direction, and making the decisions that shape what gets built. That last point may be the most revealing detail Amodei disclosed at the conference: this is the first year Anthropic's own internal pull requests have inflected upward due to Claude's work on the company's own codebase. The tool that Anthropic sells to developers is now a material contributor to Anthropic's own engineering output. That creates a feedback loop that is almost impossible for competitors without a comparable product to replicate -- the company is using its own product to build the next version of its own product. The enterprise numbers tell the same story. The company now counts over 1,000 enterprise customers spending more than $1 million per year on Claude services, a figure that has doubled since February. Much of this increase has been fueled by a wave of corporate customers including Uber and Netflix. Amodei framed the adoption curve in economic terms. "Software engineers are the ones who are fastest to adopt new technology," he said on stage. "It's a foreshadowing of how things are going to work across the economy, and how the economy is going to be transformed by AI." Anthropic's 80x growth created a compute crisis it couldn't solve alone Hypergrowth creates its own category of problem. When demand outstrips supply by an order of magnitude, the constraint is not go-to-market strategy or product-market fit. The constraint is physics. The company is growing so fast that its infrastructure has struggled to keep up, forcing Anthropic into what may be the most unexpected partnership in the current AI cycle. Amodei's comments came hours after Anthropic announced a deal with Elon Musk's SpaceX to use all of the compute capacity at his company's Colossus 1 data center in Memphis, Tennessee. As part of the agreement, Anthropic will get access to more than 300 megawatts of capacity -- over 220,000 Nvidia GPUs, including dense deployments of H100, H200, and next-generation GB200 accelerators. The deal is remarkable for several reasons. Musk has been, until very recently, one of Anthropic's most vocal critics. He has said Anthropic is "doomed to become the opposite of its name" and wrote in February that "Anthropic hates Western Civilization." But on Wednesday, Musk changed his tune, saying he spent a lot of time with senior members of the Anthropic team over the past week and that he was "impressed." "Everyone I met was highly competent and cared a great deal about doing the right thing. No one set off my evil detector," Musk wrote. The strategic logic on both sides is clear. xAI's Colossus 1 ended up with capacity that Grok's user base never grew into, while Anthropic needs compute immediately. Anthropic has been signing deals with Amazon, Google, Nvidia, and Microsoft for more compute capacity, but most of that isn't expected to come online until late 2026 or early 2027. The SpaceX deal gives Anthropic a significant boost now -- the key word being "now." As one industry watcher summarized the alignment: "Elon's enemy is Sam. Dario's enemy is Sam. Enemy of my enemy is a compute partner." Last month, Anthropic said demand for Claude has led to "inevitable strain on our infrastructure," which has impacted "reliability and performance" for its users, particularly during peak hours. The company admitted in a postmortem from late April that three bugs had affected Claude Code since March 4, and that internal tests hadn't caught them, leading to several weeks of degraded performance. Amodei said at the Code with Claude conference that the company is "working as quickly as possible to provide more" capacity and will "pass that compute on to you as soon as we can." A near-trillion-dollar valuation makes Anthropic's IPO the most anticipated debut in years The growth figures arrive at a moment when Anthropic's valuation is itself becoming one of the defining financial stories of the AI era. Anthropic has begun weighing a fresh funding round that would value the company at more than $900 billion, according to people familiar with the matter, potentially leapfrogging its longtime rival OpenAI as the world's most valuable AI startup. The velocity of the escalation is difficult to overstate. From $61.5 billion in March 2025, to $183 billion by its Series F in September, to $380 billion in February, to, if the current discussions proceed, more than $900 billion in May. Anthropic's shares were already trading at an implied $1 trillion valuation on secondary markets earlier this month. Instead of cashing out, many existing investors are waiting to potentially exit during Anthropic's anticipated IPO later this year. The company is raising what is likely to be its last private round before going public to fund its massive computing needs. Bloomberg has reported that the company is weighing an IPO as early as October 2026, with Goldman Sachs, JPMorgan, and Morgan Stanley already in early discussions. Anthropic is also building out infrastructure on longer time horizons. Amazon has agreed to invest up to $25 billion in Anthropic, securing up to 5 gigawatts of compute capacity for training and deploying Claude models. Anthropic also secured 5 gigawatts of computing capacity as part of a separate deal with Google and Broadcom that will start to come online next year. The total commitment is staggering -- tens of gigawatts of compute across three separate hardware ecosystems: Amazon's Trainium chips, Google's TPUs via Broadcom, and Nvidia GPUs through SpaceX and Microsoft Azure. For perspective: Anthropic's $30 billion run rate exceeds the trailing twelve-month revenues of all but approximately 130 S&P 500 companies. A company that was essentially pre-revenue in early 2024 now out-earns most of the Fortune 500. That comparison comes with caveats. Private-market revenue run rate is not the same thing as audited GAAP revenue, gross margin, free cash flow, or public float. OpenAI has internally argued that Anthropic's $30 billion figure is overstated by roughly $8 billion, pointing to questions about whether revenues from AWS and Google Cloud should be reported at gross value or net of the partner's cut. The accounting question will ultimately be resolved when both companies file IPO prospectuses -- but even on a net basis, Anthropic's growth rate is unlike anything in enterprise software history. Dario Amodei's vision for AI extends far beyond coding -- and he's given himself a deadline The financial story -- 80x growth, a near-trillion-dollar valuation, a scramble to secure enough GPUs to meet demand -- is dramatic on its own terms. But Amodei used his time on stage to place it inside a larger thesis about where AI is headed. He described a progression from single agents to multiple agents to what he called whole organizational intelligence -- from "a team of smart people in a room" to "a country of geniuses in the data center." The framing is deliberately expansive. What Anthropic is selling today is a coding tool. What Amodei is describing is a future in which entire categories of knowledge work are performed by fleets of AI agents operating in parallel, supervised by humans who define objectives and review outputs. He reiterated a prediction he made roughly a year ago: that 2026 would see the first billion-dollar company run entirely by a single person. "Hasn't quite happened yet," he said. "But we've got seven more months." The company has also been navigating political headwinds. The Pentagon declared Anthropic a supply chain risk in March, blacklisting it from work with the military. The company has warned the designation could result in billions in lost revenue, with over one hundred enterprise customers reportedly expressing doubts about continuing their relationships. And yet -- as that scuffle makes its way through the legal system, Anthropic is only getting more popular. Amodei said this week he's eventually hoping for "more normal" expansion. There is a temptation, when covering a company growing at this rate, to let the numbers speak for themselves. They shouldn't. Growth at 80x annualized is not a business plan -- it's an emergency. It means demand has outrun infrastructure, that customers want something the company cannot yet reliably deliver at scale, and that every week of constrained capacity is a week during which competitors can close the gap. The investors funding Anthropic -- including SoftBank, Amazon, Nvidia, Google, a16z, Lightspeed, and ICONIQ -- are making a specific bet: that compute costs continue to fall per unit of intelligence, that revenue keeps compounding faster than burn, and that whoever owns the AI infrastructure layer in 2029 will generate returns that make the interim losses irrelevant. Amodei's candor at Code with Claude was not a victory lap. It was a diagnostic -- an admission that his company is running faster than it can steer. He planned for a world of 10x growth and got 80x instead. Now he has seven months to prove that the infrastructure, the organization, and the vision can catch up to the demand. The country of geniuses in the data center is getting crowded. The question is whether anyone remembered to build enough rooms.

Anthropic strikes massive cloud pact with Google, highlighting AI industry concentration

A sweeping new agreement between Anthropic and Google Cloud is throwing into sharp relief just how concentrated -- and how enormous -- the artificial intelligence boom has become. Anthropic has committed to spending roughly US$200 billion on Google's cloud services over five years, according to a person familiar with the matter cited by The Information -- a figure that would make the start-up one of the largest buyers of computing capacity in history. The deal suggests Anthropic alone accounts for more than 40% of the revenue backlog recently disclosed by Google's parent, Alphabet -- a measure of future income tied to long-term contracts. The AI gold rush reshaping cloud demand The agreement reflects a broader shift across the technology industry: a handful of fast-growing AI companies are now driving an outsized share of demand for cloud infrastructure, committing staggering sums to secure the computing power needed to train and run advanced models, according to Reuters. Anthropic's appetite for capacity has expanded rapidly alongside the popularity of its Claude family of models. The company has struck a series of large-scale agreements across the industry, including a recent partnership with Broadcom and Google for multiple gigawatts of tensor processing unit capacity expected to come online starting in 2027. It has also signed a multiyear deal with CoreWeave and is set to secure additional capacity through Amazon Web Services. Two companies, half a trillion dollars Taken together, contracts involving Anthropic and its chief rival, OpenAI, now account for roughly half of the nearly US$2 trillion in revenue backlogs reported by major cloud providers, including Amazon, Microsoft, and Google, according to The Information. Those backlogs -- which reflect future contractual commitments rather than current revenue -- have ballooned as cloud companies race to lock in long-term demand from AI developers. The scale of the spending is staggering. Anthropic had previously projected it could spend more than US$20 billion on cloud computing this year alone, while OpenAI is expected to spend about US$45 billion, up sharply from the year before. Both companies are betting that demand for AI services will grow fast enough to justify those investments. Cloud giants double down on AI anchors For cloud providers, the strategy is clear: invest heavily in today's AI leaders in the hope that they become anchor customers whose long-term spending far exceeds the initial outlay. Alphabet, for example, has committed up to US$40 billion to Anthropic, deepening a relationship that is both collaborative and competitive in the race to develop advanced AI systems. Yet the concentration also introduces risk. Investors have begun to question whether such massive spending commitments will fully materialize, particularly as they depend on aggressive growth assumptions. The two leading AI start-ups have projected revenue increases of as much as 20 to 30 times by the end of the decade. Beyond servers: a new profit playbook Even so, the momentum is reshaping the economics of cloud computing. Providers are not only renting out servers but also earning revenue by reselling AI models to their own customers -- a business that could generate billions more in high-margin income. Companies like Amazon and Google also benefit from using their own custom-designed chips, which can improve profitability compared with relying on more expensive hardware from Nvidia. The result is an increasingly intertwined ecosystem in which cloud providers, chipmakers, and AI developers are bound together by multibillion-dollar commitments -- and by a shared bet that the demand for artificial intelligence is still in its early stages. As one industry observer put it, the AI boom may be global, but for now, much of its future hinges on the spending plans of just two companies.

Anthropic to pay Google $200 billion for AI chips and cloud services

Anthropic has reportedly agreed to pay Google $200 billion for access to cloud servers and chips over the next five years. The Information confirmed the arrangement earlier this month, noting that this deal significantly adds to Anthropic's prior multi-billion dollar contract with Amazon. The cumulative agreements with Anthropic and OpenAI are estimated to contribute to a revenue backlog of $2 trillion across major cloud providers, including Amazon, Google, Microsoft, and Oracle. These companies have been early investors in the AI sector, anticipating startups like Anthropic and OpenAI would increasingly rely on their resources as they scale. Previous projections suggested that server costs could reach $45 billion for OpenAI and $20 billion for Anthropic by 2026. Chipmakers, such as NVIDIA, have also invested in OpenAI, indicating an ongoing trend of costly circular agreements within the industry. However, the expansion of data centers is straining limited resources. Current RAM shortages are predicted to continue, resulting in higher prices and declining sales for related technology products.

Dario Amodei Says Anthropic's Explosive Growth 'Too Hard To Handle' As Startup Sees 80-Fold Surge In Q1

Artificial intelligence startup Anthropic reported explosive growth in the first quarter of 2026, with CEO Dario Amodei saying the company achieved an "80-fold" annual increase in revenue and usage, far beyond "10-fold" expectations. This highlights the blistering pace of adoption for its Claude AI products as demand strains the company's computing infrastructure, leaving the company struggling to keep up. Anthropic's Remarkable 80-Fold Growth Surprise Amodei said the company had prepared for a 10-times growth, but the first quarter instead delivered an 80-times run rate. "That is the reason we have had difficulties with compute," he said at the firm's developer event in San Francisco, according to CNBC report. Amodei described the current pace as "just crazy" and "too hard to handle," adding he hopes for "more normal" growth. He said, "We're working as quickly as possible to provide more" compute. Claude: A Key Growth DriverStrategic Partnerships Fuel Compute Expansion Amodei's comments came after Anthropic disclosed a partnership agreement with Elon Musk's SpaceX for capacity at the Colossus 1 data center in Memphis, Tennessee. The arrangement gives Anthropic access to more than 300 megawatts of power. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor. Photo Courtesy: Thrive Studios ID on Shutterstock.com Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Anthropic Explores $50 Billion Fundraising Round That Could Push Valuation Near $1 Trillion

Artificial intelligence (AI) startup Anthropic is reportedly planning on the largest private funding round in the history of technology as it looks for fresh capital to expand its AI infrastructure and consolidate its lead in the generative AI race. According to the Financial Times, Claude developer is considering a funding round $50 billion which could value the company at around $1 trillion. Anthropic's valuation talks are at an early stage and no offers have been finalized, Bloomberg separately reported that the valuation could go over $900 billion. The proposed fundraising would represent a sharp jump from its $380 billion valuation reported at the start of the year, and could make the company the most valuable in the world.

Anthropic Reportedly Bets $200B on Google Cloud, AI Chips for Claude Growth

The companies have not publicly confirmed the full terms. Because of that, the reported figure remains subject to confirmation. The reported agreement would make Anthropic one of Google Cloud's largest known AI customers. The contract is said to cover cloud access and chip capacity needed to train and run . AI companies need large amounts of computing power to serve users and improve model performance. As demand grows, access to chips and data center space has become a major part of their business plans. Google's tensor processing units, or TPUs, are expected to play a central role in the reported deal. These chips are built for machine learning workloads and help Google compete with other cloud and chip providers. The contract also shows how AI startups are spending large sums to secure future capacity. Instead of buying short-term access, companies are now signing multi-year agreements to support growth.

Anthropic commits to spending $200 billion on Google's cloud and chips, the Information reports

May 5 (Reuters) - Anthropic has committed to spend $200 billion with Google Cloud over five years as part of a recent agreement, the Information reported on Tuesday, citing a person with knowledge of the matter. The commitment indicates that the AI startup represents more than 40% of the "revenue backlog" Google disclosed to investors last week, reflecting contractual commitments from its cloud customers, according to the report. Contracts involving Anthropic and OpenAI now account for more than half of the $2 trillion in backlogs at major cloud providers, the U.S. digital news outlet said. Reuters could not immediately verify the report. Anthropic and Google did not respond to requests for comment. Google parent Alphabet's shares were up about 2% in extended trading on Tuesday following the report. (Reporting by Disha Mishra in Bengaluru; Editing by Tasim Zahid and Sriraj Kalluvila)