Google reportedly plans to invest up to $40 billion in artificial intelligence startup Anthropic, deepening a partnership between two companies that compete directly in the AI market.
The deal involves an initial $10 billion cash injection at a $350 billion valuation, with an additional $30 billion contingent on Anthropic meeting certain performance targets.
The investment comes just days after Amazon announced it would invest $5 billion into Anthropic, with the option to commit up to $20 billion more tied to commercial milestones.
These massive investments underscore how tech giants with their own AI ambitions are placing extraordinary bets on the San Francisco-based company, which has distinguished itself through its Claude family of AI models, particularly the Claude Code assistant that has gained significant traction amongst developers.
Anthropic's annualised revenue has surpassed $30 billion, up from approximately $9 billion at the end of 2025. The company now serves more than 1,000 business customers each spending over $1 million annually, double the figure from February.
Founded in 2021 by former OpenAI researchers, Anthropic raised $30 billion in a February funding round and has since attracted investor interest at valuations as high as $800 billion.
The Google deal reportedly includes substantial computing infrastructure support, with Google Cloud providing five gigawatts of capacity over the next five years.
Anthropic relies heavily on Google's tensor processing units, specialised chips considered amongst the best alternatives to Nvidia's processors for AI workloads.
This arrangement creates a symbiotic relationship where Google benefits both as an investor and infrastructure provider, even as its Gemini AI model competes with Anthropic's Claude in the marketplace.
The relationship between Google and Anthropic dates back to 2023, when the search giant initially invested $300 million for roughly a 10 per cent stake, later adding $2 billion more.
Before this latest announcement, Google's investment exceeded $3 billion, representing approximately 14 per cent ownership. The company is reportedly considering an initial public offering as early as October as it seeks to secure additional infrastructure to meet rapidly growing demand for its AI services.
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