Alphabet Inc. is set to invest up to $40 billion in Anthropic, according to a Bloomberg report. This will mark one of the largest funding commitments in the fast-escalating global AI race. The move deepens Alphabet’s ties with Anthropic even as the two compete in advanced artificial intelligence development.

The report said Alphabet has committed an initial $10 billion in cash at a $350 billion valuation. An additional $30 billion investment is contingent on Anthropic meeting performance milestones and expanding its computing capacity, according to the report.

Anthropic, the creator of the Claude model family, has seen demand surge sharply, with its annualised revenue run rate crossing $30 billion this month, up from roughly $9 billion at the end of 2025.

Robust investor attention

Investor interest has been equally robust. The company raised $30 billion in February at a $380 billion post-money valuation and is reportedly drawing fresh offers that could push its valuation as high as $800 billion.

To keep pace with demand, Anthropic has been aggressively securing computing resources. It recently struck capacity deals with Broadcom and Alphabet, signed a multi-year agreement with CoreWeave and is set to access nearly one gigawatt of capacity through Amazon’s chips by year-end.

Shares of Google were up more than 1% on Friday after the news, trading at $341 at the time of filing this report.

The partnership comes at a pivotal point for Anthropic as it provides the tech startup with a critical alternative to Nvidia’s supply-constrained chips. Anthropic is now reportedly set to utilise Google’s Tensor Processing Units (TPUs), a resource that Google is leveraging to grow its cloud business as search advertising revenue matures.