Google Invests $40B in AI Rival Anthropic

Google has committed to investing as much as $40 billion in artificial intelligence startup Anthropic, the companies announced on Friday. This substantial commitment is set to accelerate Anthropic's business trajectory, driven by the significant growth of its software programming product, Claude Code.

The investment signifies a major development in the ongoing race among tech giants to back leading AI startups. Google's commitment includes an initial $10 billion cash injection at a $350 billion valuation, with an additional $30 billion slated for investment upon Anthropic achieving certain milestones.

Anthropic leverages Google's cloud computing resources, including its Tensor Processing Units (TPUs), to develop and operate its advanced AI systems like the Claude chatbot. This partnership exemplifies the circular economy emerging within the AI boom, where investors provide capital and infrastructure in exchange for demand for their services.

Under the agreement, Google will supply Anthropic with five gigawatts of computing power starting in 2027, a considerable amount sufficient to power all homes in Minnesota. This computing commitment aims to support Anthropic's efforts to meet the escalating demand for its coding and business development tools.

This month, Anthropic reported that its annual revenue run rate exceeded $30 billion, a significant increase from $9 billion at the end of 2025. Google's investment also bolsters its cloud computing business, which saw a 36 percent increase in sales last year, reaching $58.7 billion.