Alphabet Inc.'s Google will provide up to 1 million dedicated AI processors to OpenAI rival Anthropic. The chip deal, worth tens of billions of dollars , deepens the partnership between Google and the rapidly growing artificial intelligence startup.
The deal, announced on Thursday , will significantly boost Anthropic’s computing power while solidifying Google’s position as a major investor and key AI infrastructure provider in the increasingly fierce AI race .
In a statement, Google said the batch of its own TPU chips—designed specifically to accelerate machine learning workloads—is planned for deployment in 2026 and will deliver more than 1 gigawatt of computing power .
This deal is one of the largest in the current AI hardware race, highlighting the skyrocketing costs of developing cutting-edge AI systems: these systems require massive amounts of computing power to train and run large language models.
In a statement, Anthropic CFO Krishna Rao said, "Anthropic has a long-standing partnership with Google, and this further expansion of the collaboration will help us continue to improve our computing power to delve deeper into the forefront of artificial intelligence ."
By using Google's TPUs, Anthropic will gain access to technologies other than Nvidia's. Beyond its products, the company leverages one of the most advanced chip infrastructures available, thereby reducing its reliance on scarce and expensive GPUs. The company has chosen to deepen its partnership with Google, the world's third-largest cloud service provider (after Amazon) . and Microsoft The collaboration also demonstrates its confidence in Google's proprietary AI technology.
Amazon is a major investor in Anthropic and one of its leading cloud service providers. Following news of the partnership between Google and Anthropic, Amazon's stock price fell while Google's rose.
Google has invested approximately $3 billion in Anthropic, including a $2 billion investment in 2023 and an additional $1 billion earlier this year. Meanwhile, Amazon has pledged up to $8 billion and will provide the AI startup with its own self-developed chips through Amazon Web Services (AWS).
Anthropic relies on the cloud services of these two companies to train and deploy its Claude family of large language models, which compete with OpenAI’s GPT product and Google’s Gemini AI system.
Anthropic is one of the hottest AI startups in Silicon Valley right now. Founded in 2021 by former OpenAI employees, its Claude model is renowned in the coding field, and it has achieved a 10-fold increase in users since May, generating approximately $500 million in annualized revenue.
Anthropic recently held early-stage funding talks with Abu Dhabi-based investment firm MGX, which had just completed a $13 billion funding round about a month earlier, valuing the company at $183 billion post-money—almost three times its valuation at the beginning of the year.
(Article source: CLS)
