This article first appeared on GuruFocus.
Alphabet (NASDAQ:GOOGL) shares rose more than 2.5% Friday after Anthropic and Google announced an expanded multi-year cloud computing partnership. The deal, valued at tens of billions of dollars, will give Anthropic access to up to one million of Google’s custom Tensor Processing Units (TPUs) and is expected to add more than one gigawatt of compute capacity in 2026.
Anthropic said the expanded TPU capacity will accelerate the training and deployment of its Claude AI models amid growing commercial demand. The company’s annualized revenue run rate has surged from about $5 billion in August to nearly $7 billion in October, with management targeting around $9 billion by year-end.
Anthropic continues to operate a multi-cloud setup that includes Google’s TPUs, Amazon’s Trainium chips, and NVIDIA GPUs to balance cost, performance, and flexibility. Amazon remains its largest backer with roughly $8 billion invested, while Google’s stake is about $3 billion.
The arrangement deepens Google’s ties with Anthropic but stops short of exclusivity. Anthropic said it will retain control of its models, pricing, and customer data. Analysts said the deal strengthens Google Cloud’s competitive position as AI infrastructure spending accelerates.
