Google investing up to $40 billion in Anthropic, the company behind Claude
Source: 9to5Google
Investment Details
Google is preparing a massive investment in Anthropic, the company behind Claude, despite its own Gemini model competing with the AI company.
Bloomberg reports that Google is investing $10 billion in Anthropic now, with another $30 billion if certain “performance targets” are hit. The investment will support a “significant expansion” to Anthropic’s computing capacity.
Anthropic said that Google is committing to invest $10 billion now in cash at a $350 billion valuation, the same amount it was valued at in a funding round in February, not including the recent money raised. The Alphabet‑owned company will invest another $30 billion if Anthropic hits performance targets, and will support a significant expansion of Anthropic’s computing capacity.
The initial $10 billion investment is at a $350 billion valuation, with another recent investment including $5 billion from Amazon.
Anthropic’s Relationship with Google Cloud
Anthropic is already a major customer for Google’s cloud services. A recent deal sees Google powering future Claude services as new capacity comes online. Google is also one of the few companies with access to Anthropic’s Mythos model, which is considered too dangerous for wide release at this point.
- Deal details: Anthropic inks deal with Google to power Claude with next‑gen TPUs
- Mythos model coverage: NY Times article on Anthropic’s Mythos model
Competitive Landscape
Google’s own AI model goals are caught up in a race to keep up with Claude. This week, another Bloomberg report revealed that Google is concerned about its lower position in the market for AI coding, which Anthropic currently dominates. While Google has put effort into “vibe coding,” Claude has become the go‑to option for this particular AI use case.
- Bloomberg report on Google’s AI coding challenges: Google struggles to gain ground in AI coding as rivals advance