Google is reportedly planning to invest up to $40 billion in AI startup Anthropic. The deal is expected to be structured in phases, starting with an initial $10 billion investment, with additional funding rolled out over time based on performance targets, reports Bloomberg. The move strengthens an already close relationship between the two companies, which operate as both partners and competitors in the race to build advanced artificial intelligence systems. Notably, Google has already invested more than $3 billion in the startup and owns around a 14% stake as of early 2026.
According to the report, the Sundar Pichai-led Google will invest an initial $10 billion in Anthropic at a valuation of $350 billion, consistent with its February funding round and excluding the latest capital infusion. The remaining $30 billion is expected to be deployed in phases, subject to the startup meeting specific performance milestones. And along with funding, Google is likely to back a significant expansion of Anthropic’s computing capacity.
This development comes just weeks after Anthropic expanded its partnership with Google to power its Claude AI models using next-generation TPU chips at a massive scale. The agreement is expected to provide access to around 3.5 gigawatts of compute capacity starting in 2027. For Anthropic, access to Google’s cloud infrastructure, including its custom-built tensor processing units (TPUs), provides a significant advantage in scaling its models.
The scenario becomes even more crucial as recently Amazon also confirmed a $25 billion investment in Anthropic, tied to a broader commitment for the startup to spend over $100 billion on Amazon Web Services over the next decade. Even beyond tech giants like Google and Amazon, the Dario Amodei-led firm – which is reportedly preparing for a potential IPO as early as October 2026 – has also been approached by multiple venture firms with offers that could value it at as much as $800 billion.
All this is happening at a time when Anthropic has emerged as one of the most prominent players in the AI domain, giving tough competition to rivals like OpenAI. The company’s momentum is reflected in its surging demand, with annual revenue run rate crossing $30 billion, up sharply from about $9 billion at the end of 2025. Particularly in the enterprise AI segment, adoption is accelerating rapidly for Anthropic – with its base of high-value clients growing from around 500 customers spending over $1 million annually to more than 1,000 in under two months. To support this surge, the company is aggressively scaling its infrastructure, with most new compute capacity planned in the United States as part of a broader $50 billion investment in data centers, power systems, and high-performance AI computing clusters.