Google-parent Alphabet is investing up to $40 billion in Anthropic, strengthening the relationship between two companies that act as both partners and rivals in the global artificial intelligence race. The deal includes an initial $10 billion cash investment at a $350 billion valuation, with another $30 billion conditional on performance targets. When combined with five gigawatts of compute provided over five years, Google's total commitment reaches approximately $43 billion.
The funding comes as Anthropic races toward a potential IPO and grapples with increasing computing needs, having amassed up to $65 billion in new funding deals. This follows a $5 billion investment from Amazon announced days prior to the Google deal. Anthropic has experienced significant financial growth, with annualized revenues hitting $30 billion, up from $1 billion in January 2025, outpacing OpenAI for the first time.
This latest agreement expands a longstanding partnership as AI rivals compete to secure massive compute capacity. The investment will help the startup keep up with accelerating demand for its business and coding products, following the limited release of its cybersecurity-focused Mythos model.