Google is preparing an investment of up to $40 billion in AI company Anthropic. With this move, the tech giant is strengthening its position in the rapidly growing artificial intelligence market, while simultaneously entering into a closer but also more complex relationship with a party that is both a partner and a competitor.
Bloomberg reports that Google is starting with a direct capital injection of $10 billion into Anthropic. An additional $30 billion could be added if the company meets certain performance targets. Anthropic’s current valuation remains at $350 billion, consistent with an earlier funding round this year. Parent company Alphabet explicitly links the additional investment to growth and performance.
The investment comes at a time when Anthropic has built significant momentum. The company is benefiting from the popularity of its AI solutions, including Claude Code, a system that accelerates software development. Strong demand has led to a series of major funding rounds. For example, Anthropic recently raised billions from Amazon, which also has room to further expand its stake. Investors are now speculating on a valuation that could reach $800 billion.
In addition to capital, Google is also making a significant contribution to infrastructure. The company’s cloud division will provide Anthropic with substantial computing power over the next five years. This builds on an existing partnership with companies including Broadcom.
Google is betting on infrastructure as a growth engine
This holds strategic importance for Google. The company is seeking to further grow its cloud operations now that the advertising market, its primary revenue source for years, is growing at a slower pace. By securing Anthropic as a customer and partner, Google increases demand for its own chips and infrastructure. Its proprietary TPU processors serve as an alternative to Nvidia’s hardware.
At the same time, competitive pressure is mounting. Anthropic is emerging as a dominant player in AI tools for software development, a segment where Google itself is also heavily invested. According to insiders, there is growing internal concern that the company is losing ground in this market.
The ties between Google and Anthropic date back several years. CEO Dario Amodei previously worked at Google and founded Anthropic in 2021 together with former OpenAI employees. Since then, the two organizations have remained closely connected, even as they increasingly find themselves competing for the leading position in AI.