Alphabet, the parent company of Google, has announced an investment of up to $40 billion in Anthropic, an AI startup. This move strengthens the partnership between the two entities, both key players in the competitive global AI landscape.
Google has initially committed $10 billion in cash at a valuation of $350 billion, with a potential additional investment of $30 billion contingent upon Anthropic achieving specific performance targets, as reported by Reuters. Notably, this announcement closely follows Amazon’s declaration of a planned investment of up to $25 billion in the same startup.
Anthropic has distinguished itself in the crowded AI sector by focusing on coding in its model training approach. The popularity of its Claude Code tool among developers has significantly boosted the company’s annual revenue run-rate to over $30 billion this month, a substantial increase from approximately $9 billion by the end of 2025.
In February, the startup secured $30 billion in funding at a post-money valuation of $380 billion. Recent media reports have indicated interest from venture capital firms valuing Anthropic as high as $800 billion.
To meet the growing demand for its Claude model range, Anthropic has recently sealed significant computing agreements. These include multi-year deals with chipmaker Broadcom and cloud infrastructure company CoreWeave. Additionally, the company is on track to secure nearly one gigawatt of capacity through Amazon’s chips by the year-end. Last year, Anthropic unveiled intentions to invest $50 billion in constructing data centers in the US.
The rapid ascent of Anthropic has caused ripples across broader markets. The release of several plugins earlier this year for its Cowork agent led to a notable downturn in global software stocks as investors contemplated the transformative potential of advanced AI tools.
