Google to Invest Up to $40 Billion in Anthropic [Report]

Google plans to invest up to $40 billion in Anthropic, further expanding its relationship with the AI startup whose models Apple has begun integrating into its tools. According to Bloomberg, the company is putting in $10 billion in cash at a $350 billion valuation, with another $30 billion tied to performance targets.



The agreement significantly expands Anthropic's access to processing power. Google Cloud plans to provide five gigawatts of computing capacity over the next five years, leveraging its Tensor Processing Units as a key alternative to Nvidia hardware. This infrastructure is critical for Anthropic as demand surges for tools like Claude Code, which has quickly become a go-to utility for software engineers across Silicon Valley. The Mac has also been a recent focus for these tools, with Anthropic rolling out native computer control for Claude to navigate macOS directly.


The investment comes as Apple expands its use of Anthropic's technology. Apple recently integrated the startup's models into Xcode 26.3 to support autonomous coding agents, utilizing the highly capable Claude Sonnet and Opus models. Apple also teamed up with Anthropic on Project Glasswing to help identify software vulnerabilities. The deal highlights an unusual dynamic. Google is actively competing with Anthropic in the AI coding market, yet its own engineers reportedly rely on Claude Code internally. At the same time, Google continues to work with Apple, having already secured a deal for Google Gemini to help power the next iteration of Siri.

Google is not the only tech heavyweight financing Anthropic's rapid growth. Amazon just injected another $5 billion into the startup at the same $350 billion valuation, with the option to invest an additional $20 billion down the road. With fresh funding secured, Anthropic is reportedly considering an initial public offering as early as October. Shares of Google parent Alphabet rose slightly following the news.

The scale of these investments has drawn some scrutiny. Financial analysts are increasingly highlighting the circular nature of these deals, where major cloud providers invest billions into AI startups that then use those funds to purchase server capacity and chips from their investors. Anthropic is also dealing with friction from the U.S. government, currently fighting a Pentagon designation that labeled the company a supply chain risk following a public dispute over the military use of its technology.