Google is investing in Anthropic, the company that is making waves in the AI space. The tech giant has signed a new deal where it will invest $10 billion in Anthropic with the option to invest a further $40 billion based on performance targets. This marks the second major investment received by Anthropic in the past few days, as the company recently signed a $25 billion agreement with Amazon.
Do note that Google is both a direct rival to Anthropic through Gemini and a key infrastructure supplier through Google Cloud and its tensor processing units, or TPUs, which are specialised chips built for AI workloads.
$10 billion now, $30 billion later
As per the deal, which was first reported by Bloomberg, Google will invest $10 billion at a $350 billion valuation for Anthropic. This was the market cap that the company had reached in its previous funding round. However, reports indicate that Anthropic has received offers to raise money at a valuation of $800 billion and more.
Following the initial investment, Google will have the option to invest another $30 billion in Anthropic based on certain performance criteria. Though the details regarding the criteria are unclear.
Earlier this month, Anthropic said it had signed a new agreement with Google and Broadcom for multiple gigawatts of next-generation TPU capacity expected to start coming online in 2027.
Tech giants want a piece of Anthropic
Anthropic seems to be the poster child in the AI world these days. The company has had a bunch of successful products, including Claude Code and Claude Cowork. The company’s most advanced AI model, Claude Mythos, is so powerful that Anthropic has not released it to the public. Though some reports state that the model is likely to be expensive to run at scale.
It seems that tech giants including the likes of Google and Amazon, don’t want to miss out on the Anthropic hype. Though do note that both companies were early investors in the AI startup already.
Anthropic’s run-rate revenue has risen to more than $30 billion for 2026, from about $9 billion at the end of 2025. Due to the rising demand for AI models, Anthropic has been scrambling for infrastructure. The company has faced complaints in recent weeks about Claude usage limits and has responded with a series of capacity deals, including one with CoreWeave for data-centre capacity.
