Investing.com — Alphabet (NASDAQ:GOOGL) stock rose 1.15% in after-hours trading Thursday following news that AI company Anthropic will dramatically expand its use of Google Cloud’s TPU chips, securing access to over one million of these specialized AI processors.
The expanded partnership represents Anthropic’s largest commitment to Google’s Tensor Processing Units (TPUs) to date. Under the agreement, Anthropic will gain access to well over a gigawatt of computing capacity scheduled to come online in 2026, providing the AI company with the necessary resources to train and serve future generations of its Claude AI models.
Anthropic, which initially formed a strategic partnership with Google Cloud in 2023, cited the price-performance ratio and efficiency of TPUs as key factors in its decision to expand usage. The company currently makes its Claude models available to businesses through Google Cloud’s Vertex AI platform and Google Cloud Marketplace.
“Anthropic’s choice to significantly expand its usage of TPUs reflects the strong price-performance and efficiency its teams have seen with TPUs for several years,” said Thomas Kurian, CEO at Google Cloud.
Krishna Rao, CFO of Anthropic, noted that the expanded capacity would help meet “exponentially growing demand” for the company’s AI models while maintaining their competitive edge. Currently, thousands of businesses utilize Anthropic’s Claude models on Google Cloud, including Figma, Palo Alto Networks, and Cursor.
The announcement confirmed rumored from earlier this week.
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