Google is planning to invest up to $40bn in Anthropic, the company behind Claude, despite its own Gemini model competing with the AI company.
Bloomberg reports that Google is currently investing $10bn in Anthropic now, and a possible additional $30bn if certain performance targets are hit. The investment will assist with significant expansion to Anthropic’s computing capacity.
The initial $10bn investment is at a $350bn valuation, coupled with another recent investment including $5bn from Amazon.
The investment builds on a partnership whereby Anthropic will use custom Google chips and cloud computing services to power its technology. Anthropic also mentions they will spend more than $100bn on Amazon Web Services technology to power AI over the next decade.
Anthropic is already a major customer for Google’s cloud services, with a recent deal seeing Google powering upcoming Claude services as new capacity comes online. Google is also one of the few companies who has access to Anthropic’s Mythos model, which is considered too dangerous for wide release at this point.
Meanwhile, Google’s own AI model goals are competing with Claude. A recent Bloomberg report revealed that Google is concerned about its position in the market for AI coding, which Anthropic currently dominates. While Google has put effort into ‘vibe coding’ Claude has become the go-to option for this particular AI use case.
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