Anthropic has reportedly committed to spending $200 billion on Google Cloud over the next five years, according to The Information. The AI company would thus account for more than 40 percent of Google Cloud’s future financial commitments. Parent company Alphabet is doing well on the stock market regardless: it is nearly the most valuable company in the world.
Due to capacity issues, Claude cannot grow as quickly as Anthropic would like. This is evident from the agreements the company has entered into with Alphabet, Amazon, and CoreWeave, each of which can host Claude workloads.
The strong demand for the Claude models is forcing the company to sign major infrastructure contracts. For example, it signed a multi-year contract with CoreWeave for data center space, specifically for access to Nvidia hardware. In addition, Anthropic also signed a deal in April with Google and chip designer Broadcom for several gigawatts of TPU capacity, though not until 2027.
More than half of the cloud backlogs
Contracts from Anthropic and OpenAI now account for more than half of the $2 trillion in contractual obligations with major cloud providers such as AWS, Microsoft Azure, and Google Cloud, according to The Information. Reuters was unable to confirm The Information’s report; Anthropic declined to comment, and Google referred questions to Anthropic.
Alphabet is also investing up to $40 billion in Anthropic, an amount consisting of a direct injection of $10 billion and an additional $30 billion upon meeting certain performance targets. Google, the creator of Gemini, is effectively supporting a direct rival. Nevertheless, the relationship appears far more positive for both parties than was the case with OpenAI and Microsoft, which have since largely parted ways. Although neither company has confirmed it, numerous reports have surfaced in recent years regarding alleged conflicts between the parties after Microsoft invested $10 billion in the ChatGPT developer in 2023. Nothing was ever concrete, with the most recent rumors surrounding legal action that Microsoft was reportedly considering against OpenAI and its new partner, Amazon.
Diversification and Growing Valuation
Anthropic trains and runs Claude on a mix of hardware: AWS Trainium, Google TPUs, and Nvidia GPUs. Amazon is also investing heavily in the company: it has poured $25 billion into Anthropic. Anthropic is now valued at around $900 billion, partly due to several large funding rounds.
Meanwhile, Alphabet itself is approaching a milestone on the stock market. Google’s parent company is close to surpassing Nvidia as the world’s most valuable company. That stock rally, with nearly 30 percent growth in a single month, is driven by AI ambitions and the growing cloud. For a long time, Alphabet lagged behind Microsoft, Amazon, and Nvidia—the other three companies with market values in the trillions—but that gap has now been more than closed.