Reports have emerged that Anthropic, the artificial intelligence company behind the Claude chatbot, is in advanced talks with Google to secure additional cloud computing power valued in the high tens of billions of US dollars. This would expand on the existing partnership, with Google providing Anthropic access to its custom AI chips and cloud infrastructure.
This development highlights Google’s growing influence in the generative AI ecosystem and signals its deepening integration within the broader AI technology value chain.
We’ll examine how Alphabet’s potential cloud deal with Anthropic could reinforce the company’s role as a core AI infrastructure provider.
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To be a shareholder in Alphabet, you need to believe in the company’s ability to monetize its leadership in AI and digital infrastructure, while successfully managing high capital expenditures and defending its dominance in search and advertising. The news of advanced cloud talks with Anthropic signals continued momentum in Google Cloud, but at this stage, it does not materially change the main short-term catalyst: sustained revenue growth from AI-enabled services. The biggest immediate risk remains the potential impact of elevated capital expenditure on margins if revenue growth slows.
The recently announced expanded partnership between Salesforce and Google, integrating Gemini into the Agentforce 360 platform, is closely tied to Alphabet’s deepening push into enterprise AI solutions. This move aligns with the company’s cloud and AI-driven growth catalysts, reinforcing Alphabet’s ambition to remain core to the evolving digital business landscape. On the other hand, investors should not overlook…
Read the full narrative on Alphabet (it’s free!)
Alphabet’s outlook forecasts $512.6 billion in revenue and $148.4 billion in earnings by 2028. This scenario requires 11.3% annual revenue growth and a $32.8 billion increase in earnings from the current $115.6 billion.
Uncover how Alphabet’s forecasts yield a $252.73 fair value, in line with its current price.
Fair value estimates for Alphabet from 184 members of the Simply Wall St Community range from US$171.36 to US$291.20. With competition intensifying in AI and digital advertising, perspectives on future profitability and margins can vary widely, be sure to explore multiple viewpoints before making up your mind.
