Google bets $40B on Anthropic's AI prowess
What's the story
Google has announced a massive investment of up to $40 billion in Anthropic, an artificial intelligence (AI) start-up. The deal includes an immediate cash injection of $10 billion at a valuation of $350 billion for Anthropic. The remaining $30 billion will be invested later if the start-up meets certain performance targets. The investment comes as Anthropic recently unveiled its latest model, Mythos.
Model launch
Anthropic's most powerful model yet
Mythos, Anthropic's latest model, has been released to a select group of partners this month. The company claims that Mythos is its most powerful model yet and has major cybersecurity applications. However, due to potential misuse risks, Anthropic has limited broader access while working with select organizations to evaluate and mitigate those risks.
Capacity expansion
Google Cloud to supercharge Anthropic's computing capacity
The deal between Google and Anthropic also includes a major boost in computing capacity. Google Cloud will provide 5 gigawatts (GW) of computing power to Anthropic over the next five years, with potential for further scaling. This is a huge increase considering that one gigawatt alone can power some 750,000 American homes at any given time.
Expansion
Claude Code driving revenue surge for Anthropic
Anthropic's AI coding assistant, Claude Code, has become the go-to tool for engineers across Silicon Valley. This has resulted in a massive jump in annual revenue from $9 billion at the end of 2025 to over $30 billion now. The number of enterprise customers spending more than $1 million annually with Anthropic has also doubled in under two months, now exceeding 1,000.
Future prospects
Amazon also investing in Anthropic
Anthropic has also secured a separate $5 billion investment from Amazon, with up to $20 billion more possible. This is part of a broader deal where Anthropic plans to spend up to $100 billion on AWS infrastructure over the next decade. Despite being a direct competitor in AI models, Google remains a key infrastructure supplier for Anthropic, providing access to its tensor processing units (TPUs) for AI workloads.