Alphabet invests 40 billion dollars in AI rival Anthropic to expand capacity

Alphabet, the parent company of Google, has announced a monumental investment of up to $40 billion in the artificial intelligence startup Anthropic.

This strategic move deepens the partnership between the technology giant and the AI developer, which remains a prominent rival in the global sector.

On Friday, Anthropic confirmed that Google has committed $10 billion in immediate cash at a post-money valuation of $350 billion.

This initial funding is specifically designed to support a significant expansion of the startup's computing capacity.

An additional $30 billion will be invested, provided the maker of the Claude AI models meets various performance targets in the near future.

The investment follows shortly after Amazon announced its own commitment of up to $25 billion to the firm.

Anthropic has successfully distinguished itself in the competitive AI landscape by prioritising model training specifically for coding tasks.

The company’s annual run-rate revenue reached a milestone this month, surpassing $30 billion, a sharp increase from the $9 billion reported at the close of 2025.

To meet the rising demand for its Claude series, Anthropic has recently finalised multi-year agreements with Broadcom and CoreWeave to secure essential infrastructure.

Earlier this year, the release of several plugins for the Cowork agent prompted a sharp sell-off in global software stocks as investors evaluated the disruptive potential of these advanced tools.

In 2025, Anthropic had already signalled its long-term ambitions by announcing a $50 billion plan to build domestic data centres to ensure the security and deployment of its evolving models.