Broadcom locks in long-term deal to develop Google's custom AI chips through 2031

Broadcom signs long-term deal to develop Google's custom AI chips

April 6 (Reuters) - Broadcom (AVGO.O), opens new tab said on Monday it has signed a long-term agreement with Google (GOOGL.O), opens new tab to develop and supply future generations of custom artificial intelligence chips and other components for the company's next-generation AI racks through 2031. The chip firm also signed a deal with Anthropic to provide the AI startup access to about 3.5 gigawatts of AI computing capacity drawing on Google's AI processors, starting in 2027. Financial terms of the ⁠deals were not disclosed. Shares of Broadcom rose about 3% in extended trading. Demand for custom chips such as Google's tensor processing units (TPUs), used for AI workloads, has surged in recent years as businesses seek alternatives to Nvidia's pricey graphics processors. Reuters reported in December that Google was pushing to make its TPUs a viable alternative to Nvidia's market-leading GPUs. TPU sales have become a crucial growth engine of ⁠Google's cloud revenue as it seeks to prove to investors that its AI investments are generating returns. Anthropic said on Monday that the new deal builds on the company's commitment to invest $50 billion in ⁠strengthening U.S. computing infrastructure. Demand for its AI model Claude has accelerated in 2026, with the startup's run-rate revenue now surpassing $30 billion, up ⁠from about $9 billion at the end of 2025, it said. Anthropic said it trains and runs Claude on a range ⁠of AI hardware, including Amazon Web Services' Trainium, Google TPUs, and Nvidia GPUs. Amazon (AMZN.O), opens new tab remains Anthropic's primary cloud provider and training partner. Reporting by Harshita Mary Varghese in Bengaluru; Editing by Leroy Leo Our Standards: The Thomson Reuters Trust Principles., opens new tab

Broadcom agrees to expanded chip deals with Google, Anthropic

Broadcom CEO Hock Tan speaks at the digital X event in Cologne, Germany, on September 13, 2022. Broadcom said Monday that it's agreed to produce future versions of artificial intelligence chips for Google, and the chipmaker signed an expanded deal with Anthropic that will give the AI startup access to about 3.5 gigawatts worth of computing capacity drawing on Google's AI processors. Shares of Broadcom rose 3% in extended trading. Google parent Alphabet's shares were unchanged. The disclosure in a securities filing underscores the surging demand for infrastructure that can run generative AI models. Anthropic's popularity has soared this year, with its Claude app becoming the top free U.S. app listed in Apple's App Store in February after a dispute between the company and the Pentagon became public. Broadcom CEO Hock Tan said in December that Anthropic had placed a $10 billion order for custom chips. Monday's filing did not contain a dollar amount. On an earnings call last month, Tan mentioned one gigawatt in Google chips for Anthropic in 2026 and three gigawatts in 2027.

Broadcom signs long-term deal to develop Google's custom AI chips - The Economic Times

Broadcom said on Monday it has signed a long-term agreement with Google to develop and supply future generations of custom artificial intelligence chips and other components for the company's next-generation AI racks through 2031. The chip firm also signed a deal with Anthropic ⁠to provide ⁠the AI startup access to about 3.5 gigawatts of AI computing capacity drawing on Google's AI processors, starting in 2027. Financial terms of the deals were not disclosed. Shares of Broadcom rose about 3% in extended trading. Demand for custom chips such as Google's tensor processing units (TPUs), used ⁠for AI workloads, has surged in recent years as businesses seek alternatives to Nvidia's pricey graphics processors. Reuters reported ⁠in December that Google was pushing to make its TPUs a viable alternative to Nvidia's market-leading GPUs. TPU sales have become a crucial growth engine of Google's cloud revenue as it seeks to prove to investors that its AI investments are generating returns. Anthropic said on Monday that the new deal builds on the company's commitment to invest $50 billion in strengthening U.S. computing infrastructure. Demand for its AI model Claude has ⁠accelerated in 2026, with the startup's run-rate revenue now surpassing $30 billion, up from about $9 billion at the end of 2025, it said. Anthropic said it trains and runs Claude on a range of AI hardware, including Amazon Web Services' Trainium, Google TPUs, and Nvidia GPUs. Amazon remains Anthropic's primary cloud provider and training partner.

Broadcom Stock Climbs On New Deals With Google, Anthropic - Broadcom (NASDAQ:AVGO)

AVGO stock is up. See the chart and price action here. TPUs for Google, Anthropic In an SEC filing, Broadcom revealed an expanded long-term partnership with Google to power the tech giant's future AI infrastructure. Under the new long-term agreement, Broadcom will design and supply custom tensor processing units (TPUs) for Google's upcoming generations of AI accelerators, as well as provide networking and related components for Google's next-generation AI data racks through 2031. In a separate update, Broadcom, Google and Anthropic have also deepened their strategic collaboration. Beginning in 2027, Anthropic will secure access -- via Broadcom -- to roughly 3.5 gigawatts of next-generation TPU-based AI compute capacity, forming part of Anthropic's broader multi-gigawatt expansion plan. The agreement, which hinges on Anthropic's commercial growth trajectory, reflects rising demand for Broadcom's AI chips and infrastructure solutions. The companies said they are in talks with additional operational and financial partners to support the scaled deployment. AVGO Price Action: Broadcom shares were up 2.57% at $322.50 in Monday's extended trading, after closing slightly down at 0..38% in the regular trading session, according to Benzinga Pro data. Photo: Piotr Swat / Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Broadcom shares jump on long-term AI chip and networking deals with Google By Investing.com

Investing.com -- Broadcom Inc (NASDAQ:AVGO) shares climbed 2.6% in after-hours trading Monday following the disclosure of major long-term agreements with Google (NASDAQ:GOOGL). The Monday filing reveals a deep commitment to co-developing custom silicon and networking infrastructure through the coming years. Under the new terms, the companies entered into a "Long Term Agreement for Broadcom to develop and supply custom Tensor Processing Units ("TPUs") for Google's future generations of TPUs." This partnership ensures Broadcom remains the primary design partner for the specialized chips that power Google's most advanced artificial intelligence models. The collaboration also includes a "Supply Assurance Agreement for Broadcom to supply networking and other components to be used in Google's next-generation AI racks through up to 2031." These components are critical for connecting massive clusters of chips required to train and run neural networks like Google's Gemini. Beyond the hardware production, the deal extends to third-party AI developers through a tri-party expansion involving Anthropic PBC. The filing notes that "Anthropic, beginning in 2027, will access through Broadcom approximately 3.5 gigawatts" of next-generation TPU-based compute capacity. This massive allocation of power and silicon underscores the growing scale of AI infrastructure investments as firms race for dominance. Investors likely view the 2031 timeline as a significant signal of predictable, high-margin revenue for Broadcom's custom ASIC business. Wall Street continues to reward Broadcom's unique position as a key beneficiary of the AI buildout alongside industry leader Nvidia. By locking in long-term commitments with hyperscale customers, the chipmaker continues to solidify its role at the center of the global AI supply chain.

Broadcom signs long-term deal to develop Google's custom AI chips

April 6 (Reuters) - Broadcom said on Monday it has signed a long-term agreement with Google to develop and supply future generations of custom artificial intelligence chips and other components for the company's next-generation AI racks through 2031. The chip firm also signed a deal with Anthropic to provide the AI startup access to about 3.5 gigawatts of AI computing capacity drawing on Google's AI processors, starting in 2027. Financial terms of the deals were not disclosed. Shares of Broadcom rose about 3% in extended trading. Demand for custom chips such as Google's tensor processing units (TPUs), used for AI workloads, has surged in recent years as businesses seek alternatives to Nvidia's pricey graphics processors. Reuters reported in December that Google was pushing to make its TPUs a viable alternative to Nvidia's market-leading GPUs. TPU sales have become a crucial growth engine of Google's cloud revenue as it seeks to prove to investors that its AI investments are generating returns. Anthropic said on Monday that the new deal builds on the company's commitment to invest $50 billion in strengthening U.S. computing infrastructure. Demand for its AI model Claude has accelerated in 2026, with the startup's run-rate revenue now surpassing $30 billion, up from about $9 billion at the end of 2025, it said. Anthropic said it trains and runs Claude on a range of AI hardware, including Amazon Web Services' Trainium, Google TPUs, and Nvidia GPUs. Amazon remains Anthropic's primary cloud provider and training partner. (Reporting by Harshita Mary Varghese in Bengaluru; Editing by Leroy Leo)