Google's USD 40 billion bet on Anthropic in escalating AI race
Tech giant deepens ties with fast-growing startup as competition for computing power and AI dominance intensifies
Google-parent Alphabet Inc is set to invest up to USD 40 billion in artificial intelligence startup Anthropic, marking one of the largest funding commitments in the rapidly-evolving AI sector. The companies confirmed on Friday (April 24) that the deal includes an immediate USD 10 billion cash infusion, with an additional USD 30 billion contingent on performance milestones.
The investment strengthens a long-standing partnership in which Anthropic relies on Google’s cloud infrastructure and custom chips to power its AI systems. As part of the arrangement, Google is expected to provide vast computing capacity — reportedly up to five gigawatts starting in 2027 — to support the startup’s expanding operations.
AI boom fuels race for infrastructure
The move comes amid intensifying competition among tech giants. Just days earlier, Amazon announced plans to invest up to USD 25 billion in Anthropic, including a fresh USD 5 billion commitment. In turn, Anthropic has pledged to spend over USD 100 billion on Amazon Web Services over the next decade, underscoring the scale of infrastructure required to stay competitive in AI.
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Anthropic has emerged as a formidable rival to industry leaders such as OpenAI, driven by strong demand for its Claude family of AI models and its coding-focused tool, Claude Code. The company recently reported its annualised revenue run rate had surged past USD 30 billion, a sharp rise from USD 9 billion at the end of 2025.
Rising revenues, new models, and security concerns
The AI boom has triggered a global scramble for computing resources, with companies investing tens of billions to secure chips, cloud capacity, and data centres. Anthropic has struck deals with firms like Broadcom and CoreWeave, while also expanding its use of proprietary chips from both Google and Amazon.
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At the same time, the company faces challenges tied to the power of its technology. Its latest AI model, Mythos, has been restricted to select firms over concerns about cybersecurity risks, even as reports of unauthorised access are being investigated.
With both collaboration and competition defining the sector, the latest investment highlights how alliances between tech giants and AI startups are reshaping the global technology landscape.