Google plans to invest up to $40 billion in Anthropic, deepening ties between two companies that are both partners and competitors in the race to dominate artificial intelligence, according to Bloomberg.
Anthropic said Google will immediately invest $10 billion in cash at a $350 billion valuation, with another $30 billion contingent on performance targets. The deal includes a major expansion of computing capacity, with Google Cloud expected to supply 5 gigawatts of power over five years.
The investment follows Anthropic’s rapid fundraising push, fueled by demand for its Claude Code software agent. The company recently secured an additional $5 billion from Amazon under similar terms.
The agreement highlights a broader trend of “circular deals,” where cloud providers both fund and supply AI startups. While the partnership strengthens Google’s cloud business, it also underscores intensifying competition as both firms vie for leadership in enterprise AI and coding tools.