Daijiworld Media Network - San Francisco

San Francisco, Apr 25: Google will invest $10 billion in AI startup Anthropic, with an additional $30 billion planned subject to performance targets, marking a major expansion of their partnership amid intensifying competition in artificial intelligence.

Anthropic said the investment values the company at $350 billion. The funding will also support a significant expansion of its computing capacity, with Google Cloud set to provide up to 5 gigawatts of computing power over the next five years.

The development comes as Anthropic gains traction with its AI tools, particularly Claude Code, which has seen rapid adoption among software developers. The company has been aggressively raising funds to scale operations and infrastructure.

Earlier this week, Amazon also committed $5 billion to Anthropic, with an option to invest an additional $20 billion over time.

Anthropic, founded in 2021 by Dario Amodei and former OpenAI employees, has emerged as a key player in the AI race. It remains a major customer of Google’s custom chips, known as tensor processing units (TPUs), which are considered a strong alternative to Nvidia’s hardware.

Despite the close partnership, both companies are also competitors in the race to develop advanced AI systems and dominate enterprise adoption.

The deal follows earlier collaborations involving Broadcom and highlights growing demand for high-performance computing in AI development.

Anthropic is reportedly exploring an initial public offering later this year as it seeks to capitalise on its rapid growth.

However, analysts have raised concerns over the increasing interdependence between AI startups and tech giants, particularly where companies both invest in and supply infrastructure to the same firms.

The latest investment underscores the escalating global race to build next-generation AI technologies and secure leadership in the evolving sector.