Google plans to invest even more money into Anthropic

Source: Engadget

Overview

Google plans to invest up to $40 billion in Anthropic, according to Bloomberg. This follows previous investments and a joint agreement with Google and Broadcom for “multiple gigawatts of next‑generation TPU capacity.”

Deal Details

• Initial commitment: $10 billion at Anthropic’s current valuation.
• Potential additional funding: Up to $30 billion if Anthropic meets specific performance milestones.
• Computing resources: Through Anthropic’s existing commitment to use Google’s TPUs and servers, Google will provide 5 gigawatts of computing capacity in 2027.

Comparison with Amazon

Anthropic recently struck a similar deal with Amazon:

• Amazon investment: $5 billion upfront, with an additional $20 billion contingent on milestones.
• Hardware commitment: Anthropic will use Amazon’s Trainium chips for its AI models.

Industry Context

These arrangements illustrate:

• Anthropic’s high cash burn rate—its most recent funding round raised $30 billion.
• A broader pattern of “circular deals” in the AI sector, where startups receive capital from cloud providers and, in return, commit to using the providers’ silicon and infrastructure.
• Similar dynamics are seen in relationships among OpenAI, Nvidia, Microsoft, and other AI ecosystem players.

Source

This article originally appeared on Engadget:
Google plans to invest even more money into Anthropic