Tech giant Google (GOOGL) is becoming more important to Washington’s AI strategy as officials worry about a shortage of computing power. According to The New York Times, CEO Sundar Pichai recently met with Trump administration officials to discuss cybersecurity threats. However, the bigger concern was AI capacity, meaning whether the government has enough processing power to run advanced AI tools for national security.
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New trading tool for AMZN bullsThat concern became more urgent after Anthropic released Claude Mythos Preview, its most powerful model for coding and agentic tasks. Anthropic has so far limited access to only a small group of corporate and government users in order to improve safety. Still, the model has alarmed Washington because tests show that it can find and exploit weaknesses in important software faster than traditional cybersecurity teams. However, the worry is not only what the model can do, but whether Anthropic has enough compute to keep it available for high-priority users during a crisis.
As a result, the government is trying to reduce its dependence on Anthropic by working with more AI providers. Nevertheless, Google faces a challenge because some of its Tensor Processing Units (TPUs) cannot yet be used in certain classified settings. By comparison, Anthropic’s models largely run on Amazon Web Services (AMZN), which already has Impact Level 6 security certifications. Because of this, the government is looking for ways to speed up similar clearance for Google’s TPUs.
Are GOOGL Shares a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 28 Buys and five Holds assigned in the past three months. Furthermore, the average GOOGL price target of $421.70 per share implies 10.3% upside potential.
