Artificial intelligence (AI) startup Anthropic (PC:ANTPQ) is in early discussions with Alphabet’s (GOOGL) subsidiary, Google, about a cloud computing deal that could be worth tens of billions of dollars, Bloomberg reported. The potential agreement would deepen Google’s role as Anthropic’s infrastructure provider.
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Following the news, GOOGL stock rose more than 3% in after-hours trading, reflecting investor optimism about Google’s growing role in the AI arms race.
The deal, still under negotiation, is expected to expand Anthropic’s access to Google Cloud’s computing power, a key resource for training and deploying large-scale AI models.
It must be noted that Google has already invested about $3 billion in Anthropic — $2 billion in 2023 and another $1 billion earlier this year.
Why Does This Deal Matter?
As enterprise adoption of AI accelerates, cloud providers are racing to secure long-term partnerships with top model developers. Anthropic already uses Google Cloud for some of its workloads, and this new deal would deepen that partnership.
It would also place Anthropic’s alliance with Google alongside other major AI-cloud pairings, such as OpenAI (PC:OPAIQ) with Microsoft (MSFT) and Meta (META) with Amazon’s (AMZN) AWS.
As AI models become more demanding, having access to powerful cloud infrastructure is not just a technical advantage but a key factor driving revenue for cloud providers.
For Google, the deal could help solidify its position as a leading AI cloud provider, especially as it competes with Microsoft Azure and AWS. For Anthropic, it would ensure the compute scale needed to train next-gen models while maintaining independence from rival platforms.
What Is the Target Price for Google Stock?
On TipRanks, GOOGL stock has received a Strong Buy consensus rating, with 29 Buys and eight Holds assigned in the last three months. The average Alphabet stock price target is $259.40, suggesting an upside potential of 3.57% from the current level.
