Google Plans to Invest Up to $40 Billion in Anthropic to Support its Massive Expansion of Computing Power
Anthropic announced on Friday that Google has committed to investing $10 billion in cash, valuing the company at $350 billion, the same valuation as its February funding round (excluding recent additional financing). In addition, Google will invest another $30 billion when Anthropic reaches performance targets and support its significant expansion of computing power.
Google will invest $10 billion in Anthropic PBC, with the potential for an additional $30 billion, a move that will strengthen the cooperative yet competitive relationship between the two companies.
Anthropic is accelerating its fundraising efforts following a breakthrough success with Claude Code, an AI agent that accelerates software development processes. The company announced earlier this week that it had received another $5 billion investment from Amazon, also valuing it at $350 billion, with an option for a future additional investment of $20 billion. Anthropic raised $300 million in February, since then investors have sought to acquire stakes at a company valuation of $800 billion or higher.
Google’s Tensor Processing Units (TPUs) are one of the major alternatives to Nvidia chips, and these chips are both scarce and critical for developers like Anthropic in the AI industry, which requires massive computing power.
Anthropic could potentially go public as early as October and is actively seeking more infrastructure to meet growing product demand. Claude Code has quickly become a preferred tool for engineers in Silicon Valley, including some Google employees.
Anthropic CEO Dario Amodei previously worked on AI research at Google. The two companies have maintained close ties since he founded Anthropic in 2021 with a group of former OpenAI employees. Last year, Google announced it would provide Anthropic with up to 1 million TPU chips, a deal worth hundreds of billions of dollars.