Broadcom secures long-term Google AI chips deal through 2031, expands Anthropic partnership

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 Repeats Apple Playbook In AI - Broadcom (NASDAQ:AVGO)

Broadcom Is Repeating Its Apple Playbook -- But This Time It's AIFrom iPhones To AI Factories JPMorgan analyst Harlan Sur points out that Broadcom's relationship with Apple didn't just begin with supply -- it evolved through multiple renewals and upsized commitments as Apple grew more dependent on its RF technology. That same pattern now appears to be playing out in AI. Broadcom's latest agreements with Google lock in custom TPU development and AI networking infrastructure through 2031, spanning multiple generations of chips. Sur sees this as more than a contract -- it's a design-in runway that extends across the full AI stack, from silicon to connectivity. Lock-In Over Competition At a time when investors worry about hyperscalers building chips in-house, Sur argues this deal does the opposite -- it cements Broadcom's role. By combining compute silicon with networking components inside Google's AI racks, AVGO isn't just a supplier anymore; it's embedded in the architecture itself. The same dynamic is emerging with Anthropic, where AI compute commitments are scaling rapidly into multi-gigawatt deployments. According to Sur, that kind of expansion suggests infrastructure is being built with future demand already in mind, not just current needs. The Real Shift In Broadcom Stock The takeaway isn't just growth -- it's visibility. Sur believes the Google agreement provides multi-year clarity across Broadcom's highest-value AI businesses, reinforcing confidence in AI revenues surpassing $120 billion by 2027. If the Apple playbook was about smartphones, this one is about AI infrastructure -- and this time, Broadcom isn't just inside the device. It's inside the entire system. Photo: Tada Images / Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Broadcom TPU Deals Extend 'AI Supply Visibility': Analyst - Broadcom (NASDAQ:AVGO)

Broadcom TPU Deals Extend 'Multi-Year AI Supply Visibility': Analyst The deal includes the supply of 3.5GW (gigawatts) of TPU-based AI compute capacity to AI startup Anthropic, starting in 2027. The deals significantly increase Broadcom's visibility "as a longer-term main design partner for the TPU," according to BofA Securities analyst Vivek Arya. Check out other analyst stock ratings. The Broadcom Analyst: Arya maintained a Buy rating and price target of $450. The Broadcom Thesis: The latest deal solidifies the company's role as the main TPU design partner for Google, which had been to insource (COT) or diversify to other partners, such as MediaTek, Arya said in the note. The stock's current valuation does not reflect Broadcom's "well-proven AI model," he added. Broadcom should be able to generate earnings of more than $30 per share by 2030 with its custom ASIC programs providing multi-year visibility and its networking gaining more traction, Arya said. AVGO Price Action: Shares of Broadcom had risen by 3.66% to $325.94 at the time of publication on Tuesday. Image: Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Anthropic's Deal With Broadcom Gets AVGO Stock Trending Overnight -- Here's How Claude-Parent's Valuation Co

Major TPU Expansion To Power Claude AI The expanded compute infrastructure is designed to fuel the company's frontier Claude models and meet growing global demand for its AI services. Investors reacted quickly: Broadcom shares jumped 2.34% overnight, closing at $321.79, at the time of writing, reflecting optimism about the company's role in supplying critical AI hardware. Anthropic's Sky-High Valuation The round pushed the company's post-money valuation to $380 billion, positioning it as one of the highest-valued AI startups globally. AI Rivals Set The Benchmark Despite its impressive valuation, Anthropic still trails AI powerhouse OpenAI, which raised $122 billion in March 2026, reaching an $852 billion post-money valuation. Meanwhile, Elon Musk's xAI exceeded its $15 billion Series E target by raising $20 billion in January 2026, later merging with SpaceX in a deal that valued xAI at $250 billion and SpaceX at roughly $1 trillion. Benzinga Edge Stock Rankings indicate that AVGO may encounter short- and medium-term headwinds, but it continues to exhibit a robust long-term uptrend, supported by a Quality score in the 95th percentile. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Investor Outlook: Broadcom-Google partnership lifts AI chip demand

Broadcom shares are rising after announcing a long-term agreement with Google to develop chips powering faster and more efficient artificial intelligence models, reinforcing the scale of global AI infrastructure demand. BNN Bloomberg spoke with Nicholas Mersch, portfolio manager at Purpose Investments, who said the deal -- alongside rapid growth at Anthropic -- points to accelerating enterprise adoption and sustained investment in compute capacity. Read the full transcript below: ANDREW: Shares in Broadcom are getting a lift today. The semiconductor company has announced a long-term agreement with Google to develop and supply devices responsible for running faster and more energy-efficient large AI models. The companies are also working with Anthropic to power that company's growing operations. We're joined by Nicholas Mersch, portfolio manager at Purpose Investments. Nicholas, always great to see you. Thanks very much. So these are Tensor Processing Units. Google apparently invented them, and they help machines learn faster. NICHOLAS: Yeah, that's right. This industry is filled with acronyms. And this headline this morning is really exciting -- it's a great time to be investing in many of these technology companies. There are several important details in this announcement. First, Anthropic's revenue growth. It was at a $9 billion annualized run rate at the end of last year, and over the past three months that has increased to $30 billion. That's a significant jump and a strong signal of demand for artificial intelligence. We're seeing widespread adoption of these tools, with companies actively implementing them. That's driving increased usage and inference, which in turn requires more computing capacity. The second key point is the scale of infrastructure. The buildout is expected to expand from one gigawatt in 2026 to 3.5 gigawatts by 2027. That suggests there is no slowdown in demand for AI infrastructure. It also highlights growing competition to Nvidia. Google's TPUs, supported by Broadcom, offer an alternative for companies looking to build custom silicon and reduce reliance on Nvidia's pricing power. ANDREW: Anthropic is not public yet, but could it be a major IPO? NICHOLAS: Yes, it could be. There are a few large IPOs being discussed, including Anthropic and OpenAI. Anthropic's positioning has been strong, particularly with enterprise use cases such as coding. Meanwhile, OpenAI has faced some challenges around strategic direction and capital allocation. As a result, Anthropic is gaining momentum and appears to be competing effectively among leading large language model developers. ANDREW: Have you been a buyer of Broadcom lately? NICHOLAS: Yes. Broadcom is an attractive name in this space. The company is positioning itself as an alternative provider of custom AI chips for large customers. It already has relationships with major players such as Google, Anthropic, Meta and OpenAI, along with additional customers that have not been publicly identified. Nvidia remains dominant, but there are efforts to expand capabilities on the inference side. Nvidia has also moved in that direction through partnerships, including with companies focused on inference performance. At the same time, Google's stack, supported by Broadcom, is gaining traction. So you're seeing competing ecosystems develop. ANDREW: Is that Elon Musk's Grok? NICHOLAS: No, this is different. Elon Musk's Grok is separate. This refers to Groq, which focuses on hardware designed for fast inference. The industry is shifting more toward inference -- using models repeatedly -- because that's where efficiency gains are being realized. ANDREW: We're tight for time. What about Celestica? The stock is down about 16 per cent from November. Would you be a buyer? NICHOLAS: Celestica fits well into this theme. It's one of the clearer ways to gain exposure to AI infrastructure from a Canadian perspective. The company builds key components such as switches, racks and interconnects that support data centres. These are essential even if they receive less attention than chips. Celestica has confirmed it is a manufacturing partner for Google's TPU systems. That places it directly within this ecosystem. As infrastructure investment increases, that demand flows through to companies like Celestica. Given the recent pullback, it's an interesting opportunity. ANDREW: Thanks very much, Nick. Always great speaking with you. Nicholas Mersch, portfolio manager at Purpose Investments. ---

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 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 takes center stage on Wall Street

A dominant force in the field of ASICs-custom-designed specialized chips-Broadcom has established itself as a key player in the AI ecosystem. The company notably contributed to the development of Alphabet's Ironwood TPU. The success of models such as Gemini has thus benefited both Google and Broadcom, whose market visibility continues to grow. Just a few days ago, the group announced the extension of its agreement with Alphabet and Anthropic regarding Ironwood TPUs through 2031. According to Vijay Rakesh, an analyst at Mizuho Securities, this deal "solidifies AVGO's leadership in the AI ASIC market through 2031 (compute and networking)," while helping it capture advanced technologies and significantly increase revenues tied to these partners. He also highlights that this momentum could represent over 40% to 64% of Broadcom's revenue, with considerable growth prospects as computing power requirements escalate. Harlan Sur, an analyst at JP Morgan, expressed a highly positive outlook on this announcement in his April 7 note. "This agreement, which combines a long-term development agreement (LTA) with revenue commitments for the next four generations of TPUs and a component and networking supply agreement, provides multi-year visibility across AVGO's two most important AI product lines. It thus consolidates its position as the preferred partner for silicon and connectivity within the deployment of Google's AI infrastructure for the next decade. This point is particularly significant given current investor debates regarding the sustainability of custom chips and the risk of customer concentration in this segment." Prospects bolstered by Anthropic rumors In parallel, rumors reported by Reuters suggest a potential deepening of ties between Broadcom and Anthropic. The AI startup, the creator of Claude, is reportedly considering designing its own chips. While these projects remain at a preliminary stage, they could pave the way for a collaboration with Broadcom, given its recognized expertise in ASICs. As a reminder, the San Jose-based firm announced a partnership with OpenAI in late 2025 aimed at creating an in-house chip for the creators of ChatGPT. This speculation is heightening investor interest, especially since competition in this segment remains limited. Marvell Technology appears to be one of the few players capable of competing, with its chips notably used by Amazon Web Services (Trainium chips) and Microsoft (Maia chips). In this context, Broadcom confirms its strategic position at the heart of the artificial intelligence value chain, benefiting from both solid partnerships and a particularly buoyant market environment.

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)