Alphabet’s (GOOGL) Google is making one of its biggest AI bets yet, putting $10 billion into Anthropic now and leaving the door open for another $30 billion, Bloomberg reported. The move marks a major bet in the AI race, and a striking bet to deepen ties with a company that is simultaneously a partner and a rival.
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The $10 billion investment values Anthropic at $350 billion, the same as its February funding round. The additional $30 billion will depend on Anthropic hitting performance milestones and will support a major expansion of the startup’s computing capacity.
Here’s Why Google Is Betting on Anthropic
At the center of the deal is AI infrastructure. Google Cloud will provide Anthropic 5 gigawatts of computing capacity over the next five years, with the option for even more later. For scale, one gigawatt is enough to power about 750,000 U.S. homes
This aligns with Alphabet’s strategy to diversify beyond its maturing search-ad business and focus on AI infrastructure, where demand is exploding and capacity is scarce.
The investment also signals Google’s confidence in Anthropic’s momentum. Products such as Claude Code and Claude’s Cowork agent have gained traction across the developer and enterprise ecosystem. This positions Anthropic as one of the few credible challengers to ChatGPT-maker OpenAI.
By backing Anthropic, Google ensures that a major frontier-model developer remains tightly integrated with its cloud and TPU ecosystem, even if Anthropic is also a competitor in the race to build the most capable AI models.
Is GOOGL Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Alphabet stock based on 26 Buys and five Holds assigned in the past three months. Further, the average GOOGL price target of $387.68 per share implies 12.83% upside potential.
