In a significant move to strengthen its position in the global AI race, Alphabet, the parent company of Google, has announced plans to invest up to $40 billion in artificial intelligence startup Anthropic. The investment highlights growing competition and collaboration in the rapidly evolving AI ecosystem.
Anthropic confirmed that Google will initially invest $10 billion in cash at a valuation of $350 billion. An additional $30 billion investment will follow if the company meets specific performance targets. The funding is aimed at expanding Anthropic’s computing capacity to support its growing AI operations.
This announcement comes shortly after Amazon revealed plans to invest up to $25 billion in the same startup. Anthropic has gained attention in the competitive AI space by focusing heavily on coding-related applications.
The company’s Claude Code tool has seen strong adoption among developers. Its annual run-rate revenue has crossed $30 billion this month, rising sharply from around $9 billion at the end of 2025.
Earlier this year, Anthropic raised $30 billion in a funding round that valued the company at $380 billion post-money. Reports suggest that venture capital firms have shown interest in valuing the company at up to $800 billion.
To meet rising demand for its AI models, Anthropic has been actively securing computing resources. It recently signed multi-year agreements with Broadcom and CoreWeave and is expected to access nearly 1 gigawatt of computing capacity through Amazon’s chips by the end of the year.
Last year, the company had announced plans to invest $50 billion in building data centres in the US to support AI model training and deployment.
Earlier in the year, the release of plugins for Anthropic’s Cowork agent triggered a sharp selloff in global software stocks, as investors assessed the disruptive impact of advanced AI tools.
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