Google to Invest Up to $40 Billion in Anthropic

Google will invest at least $10 billion in Anthropic and can increase the total amount to up to $40 billion if performance targets are met. According to Bloomberg, this investment commitment has a conditional escalation structure.

Earlier, Amazon also made an initial investment of $5 billion in Anthropic just days ago, and both deals value Anthropic at $350 billion. Anthropic has seen rapid growth in usage of its Claude models and Claude Code, and the controversy surrounding OpenAI and ChatGPT, stronger agentic workflows, and new products like Claude Cowork have also boosted this growth momentum.

Alongside the surge in demand, outages and usage restrictions have continued. Anthropic has been testing measures such as limiting usage during peak hours or removing the most compute-intensive tools from lower-priced plans.

This investment will be used to secure chips for training and inference and cloud computing to narrow the gap between demand and supply. Ultimately, the circular structure has become more pronounced, where Big Tech invests in AI startups, and the startups in turn buy that company's chips and cloud services. Google, while competing with Anthropic on models, had already invested once before.