- Google plans to invest $40 billion in AI firm Anthropic PBC, starting with $10 billion
- Google already holds over 10% stake in Anthropic after investing $3 billion by early 2026
- Additional $30 billion investment depends on Anthropic meeting performance targets
Alphabet Inc. owned Google has said that it plans to invest $40 Billion in Artificial Intelligence company Anthropic PBC, as per reports on Friday. Google will initially infuse $10 billion in Anthropic PBC, with another $30 billion potentially to follow later.
The company has already invested more than $3 billion in the AI startup, holding an over 10% stake as of early 2026. Interestingly, both companies are rivals and partners in the race of bolstering AI build.
Anthropic has said that Google is making a commitment of $10 billion now in cash at a $350 billion valuation, as per Bloomberg reports. Notably, it is the same amount that the company was valued at in a funding round in February, and excludes recent money raised.
However, Google's investment in the company is not without conditions. The $30 billion investment will only follow through if Anthropic hits performance targets, the startup stated on Friday. The investment is suuposed to support a substantial expansion of Anthropic's computing capacity.
The Dario Amodei-led company is a big customer of Google's chips and cloud services. Google has earlier indicated that it is working towards to grow these as its main moneymaker, search advertising, matures.
As part of the deal, Google Cloud has agreed to provide 5 gigawatts worth of computing capacity to Anthropic over the next five years, and several more gigawatts could follow, the reports said.
Anthropic has scaled up its fundraising amid the groundbreaking success of Claude Code, an AI agent that speeds the process of writing computer software.
Earlier this week, the startup had reportedly said that acquired another $5 billion from Amazon, at the same valuation of $350 billion. Amazon to, has an option to infuse another $20 billion over time.
In February, the AI company had raised $30 billion and investors have since resorted to backing the firm at a valuation of $800 billion or more.
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