Google pumps $10bn into AI firm Anthropic

Latest cash injection follows promise by Amazon to invest $5bn

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Google is making a substantial financial commitment to Anthropic, a leader in the field of artificial intelligence, according to Bloomberg. The agreement includes an initial investment of $10 billion (€8.5 billion) by Google, valuing Anthropic at $380 billion (€324 billion). A further $30 billion (€25.6 billion) may be invested depending on Anthropic’s performance.

This deal builds on an existing partnership between the two companies. Earlier this month, Anthropic secured a substantial amount of computing power through an agreement with Google and Broadcom. Anthropic has access to Google Cloud services, which compete with Amazon Web Services and Microsoft Azure. It also makes use of Google’s custom chips as an alternative to Nvidia’s graphics processing units.

Strikingly, Google is investing in Anthropic while at the same time competing directly with it on the market for AI products and services through its own Gemini AI model. The partnership dates back to 2023, when Google initially invested $300 million (€256 million) for a stake of around 10%. Further investments brought the total to more than $3 billion (€2.6 billion). As a result, Google is said to hold 14% of the shares in Anthropic.

The huge investments in leading AI labs such as OpenAI and Anthropic are part of a wider trend among tech giants. These funding rounds dwarf earlier investments in start-ups and are expected to generate substantial revenues.

Anthropic’s agreement with Google comes at a time when the company is experiencing strong demand for its Claude AI model from businesses, developers and consumers. This surge in popularity is putting pressure on Anthropic’s infrastructure.

The deal is in line with a similar agreement Anthropic recently struck with Amazon. The e-commerce giant initially invested $5 billion (€4.2 billion), with the option to invest a further $20 billion (€17 billion) based on future commercial milestones. Dario Amodei, CEO of Anthropic, pointed to the need for robust infrastructure to meet the growing demand for Claude. He said the partnership is vital to delivering their AI products to a rapidly expanding user base.

Anthropic, founded in 2021 by former OpenAI researchers and executives, has gained significant prominence with its AI products, particularly the Claude code assistant. The company’s annual revenue rose to more than $30 billion (€25.6 billion).

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