Google commits to invest up to $40 billion in Anthropic

Google has committed to invest as much as $40 billion in Anthropic, the companies said Friday, as the AI startup accelerates its business behind the explosive growth of its software programming product, Claude Code.

The deal is the latest in a series of huge investments that tech giants have made in the top AI startups, OpenAI and Anthropic. Last week, Amazon agreed to invest as much as $25 billion in Anthropic.

Google will invest $10 billion in cash now at a $350 billion valuation, which is the same value Anthropic had in February. The other $30 billion in cash will be invested when Anthropic meets certain milestones.

Under the latest investment, Google will provide Anthropic with 5 gigawatts of computing power starting in 2027, which is enough electricity to power all the homes in Minnesota. It could provide more computing power if that was needed.

This could help Anthropic as it tries to build out the infrastructure it needs to meet the surging demand for its Claude Code. Companies are signing up to use Anthropic’s coding and business tools to develop programs and applications. Its adoption has rocked long-standing software companies.

Anthropic said that its April annual revenue run rate surpassed $30 billion, up from $9 billion at the end of 2025. Google has its own competing AI products. Gemini, its AI system, powers Google Search and a separate chatbot and research system that subscribers pay to use.

But the Anthropic investments have helped Google secure demand for its growing cloud computing business. Last year, Google Cloud sales grew 36%, to $58.7 billion.

The agreements between Anthropic and the tech giants are examples of how circular deals have become critical to the AI boom that is driving the US economy. Google, Amazon, Microsoft and Nvidia have invested huge sums into Anthropic and OpenAI. In exchange, those startups buy chips and computing power from those investors.

The New York Times