Anthropic Commits $200 Billion to Google Cloud Services and Chips

Deep News05-06 07:42

Anthropic has pledged to spend $200 billion on Google Cloud services over the next five years, according to a media report citing an informed source. This commitment is part of a recent agreement between the two companies and indicates that the AI startup accounts for more than 40% of the unrealized revenue disclosed by Google to investors last week.

Following the news, shares of Alphabet, Google's parent company, rose approximately 2% in after-hours trading on Tuesday.

In April, Anthropic signed an agreement with Google and its chip partner Broadcom to secure several gigawatts of Tensor Processing Unit (TPU) computing power, which is expected to become operational starting in 2027. Alphabet also plans to invest up to $400 billion in Anthropic to deepen the partnership. The report noted that contracts involving Anthropic and OpenAI currently represent more than half of the $2 trillion in orders held by major cloud service providers such as Amazon AWS, Microsoft Azure, and Google Cloud.

Driven by investments in artificial intelligence and a booming cloud business, Alphabet's stock has recorded a record-breaking rally and is poised to surpass NVIDIA as the world's most valuable company by market capitalization.

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