Anthropic Draws Google’s $40B Bet in Latest AI Megadeal

Google is readying a potential $40 billion investment in Anthropic, according to Bloomberg, signaling the escalating arms race for AI dominance. The deal begins with $10 billion in cash, valuing Anthropic at $350 billion—matching its February funding round valuation. Google could add another $30 billion if Anthropic hits certain performance targets. This comes on the heels of Anthropic raising $30 billion in February, driven by the breakout success of Claude Code with software engineers. The investment underscores the massive capital required to compete in the AI frontier, where companies must secure both cash and compute infrastructure at unprecedented scale.

Compute is a critical component of the deal. Google Cloud will provide 5 gigawatts of computing capacity to Anthropic over five years, with potential for more. This capacity leverages Google's TPU chips, including the new TPU 8t and TPU 8i designed for large-scale training and inference. Notably, Amazon also expanded its partnership last week, committing up to $25 billion with similar compute provisions using Trainium chips. Anthropic's fundraising is increasingly becoming an infrastructure story, as cloud giants compete to supply the computational fuel behind Claude. Meanwhile, DeepSeek's cheaper V4 model and Huawei's entry add new pressure to the global AI race.