Alphabet-owned Google will invest $10 billion in artificial intelligence firm Anthropic, with a further $30 billion tied to performance targets, Bloomberg reported, highlighting an expanding partnership between the two companies despite intensifying competition in AI.

Anthropic said the initial investment will be made in cash at a valuation of $350 billion, in line with its February funding round. 

“The Alphabet Inc.-owned company will invest another $30 billion if Anthropic hits performance targets,” the company said, according to Bloomberg, adding that the funding will help scale its computing capacity.

The investment comes as Anthropic steps up fundraising amid strong demand for its AI tools, particularly Claude Code. Earlier this week, the startup said it had secured $5 billion from Amazon at the same valuation, with the potential for another $20 billion over time.

Anthropic had raised $30 billion in February and investors have since shown interest in backing the company at valuations exceeding $800 billion, the report said.

Google Cloud is expected to play a central role in the partnership. “Google Cloud will provide 5 gigawatts worth of computing capacity to Anthropic over the next five years, and several more gigawatts could follow,” Bloomberg reported, noting that the deal expands an agreement involving Anthropic, Google and Broadcom.

Anthropic is already a major customer of Google’s cloud and chip offerings, including its tensor processing units (TPUs), which are seen as a key alternative to processors from Nvidia in high-performance AI workloads.

The company is also exploring an initial public offering as early as October as it looks to secure more infrastructure to meet rising demand.

Anthropic was founded in 2021 by Dario Amodei, a former Google AI researcher, along with other ex-OpenAI employees. Google had previously invested about $3 billion in the company and committed to supplying up to 1 million TPU chips.

Even as the companies deepen ties, they remain competitors in the race to develop advanced AI systems and dominate enterprise adoption. 

Anthropic is also facing scrutiny from US authorities. The company has been designated a supply-chain risk by the Pentagon, a classification it is challenging in court, following a dispute over the potential military use of its technology.

Published on: Apr 24, 2026 10:49 PM IST