Anthropic and Google are in talks to form a multi-billion-dollar cloud partnership that would expand Anthropic’s access to Google Cloud computing power for training and deploying its Claude AI models, according to a Bloomberg News report.

The proposed deal would extend Google’s role as a major cloud infrastructure provider for Anthropic, which develops the Claude AI family of models. Sources familiar with the discussions said the contract’s value could reach the high tens of billions of dollars, though negotiations remain ongoing and no agreement has been finalized.

According to Investor’s Business Daily, Anthropic has long relied on Amazon Web Services (AWS) for much of its cloud infrastructure. While Amazon remains a major investor and provider, Google has also invested more than $2 billion in Anthropic to date, making it one of the startup’s key strategic backers alongside Amazon.

As reported by PYMNTS, the proposed partnership would give Anthropic access to Google’s tensor processing units (TPUs) — proprietary chips engineered to accelerate machine learning and deep neural network training. These chips represent a critical differentiator in the AI infrastructure market, where computing capacity and chip availability increasingly define which firms can train and deploy the most advanced AI models.

If completed, the deal would deepen a relationship that already includes billions in investments and position Google more prominently in the generative AI infrastructure market, expanding its reach alongside Amazon Web Services and Microsoft Azure.

Alphabet’s stock gained 2.3 percent in after-hours trading on the news, reflecting investor optimism about the company’s growing influence in AI infrastructure provisioning.

Google declined to comment, and Anthropic did not provide a response by press time.

Founded in 2021, Anthropic has emerged as one of the leading AI research and enterprise software companies, competing directly with OpenAI, Cohere, and Mistral AI in developing large-language models and applied AI systems.

The company counts Google and Amazon among its largest investors, each holding substantial stakes tied to cloud partnership agreements. Anthropic uses AWS as its primary training partner — including AWS Trainium and Inferentia chips — for its largest Claude model training cycles, and selected Google Cloud in early 2023 as another core infrastructure provider leveraging TPUs and GPU clusters.

Expanding that relationship could give Anthropic the massive computational scale required to continue training and serving its next generation of Claude models, including Claude 3 and future iterations expected in 2026.

According to Reuters, Anthropic is projecting to more than double — and potentially nearly triple — its annualized revenue run rate next year, driven by rapid enterprise adoption of Claude-powered products.

The company is on track to achieve an internal goal of $9 billion in annual run-rate revenue by the end of 2025, a figure extrapolated from its current sales pace. That growth positions Anthropic as one of the fastest-scaling firms in the AI industry, rivaling OpenAI’s revenue trajectory and validating strong enterprise demand for trusted AI assistants across sectors.

If finalized, the deal would underscore the intensifying competition among cloud providers — primarily Google Cloud, AWS, and Microsoft Azure — to power the AI workloads of leading model developers.

These partnerships serve dual purposes: securing steady infrastructure revenue for the cloud providers and giving AI companies the compute scale they need to train ever-larger models.

For Google, the potential expansion with Anthropic represents both a commercial opportunity and a strategic hedge, ensuring the company remains central to the foundation-model ecosystem despite rapid advancements by OpenAI and Microsoft.

Q1: What is the reported value of the deal?
A: Sources told Bloomberg News that the cloud computing arrangement could be worth the high tens of billions of dollars, though it has not been finalized.

Q2: Why does Anthropic need such a large cloud contract?
A: Training and deploying advanced AI models like Claude 3 requires enormous computing power and data storage, which are provided through Google Cloud infrastructure.

Q3: How are Google and Amazon involved with Anthropic?
A: Both Google and Amazon are major investors in Anthropic, and each provides cloud resources under separate partnerships.

Q4: How is Anthropic performing financially?
A: The company expects to reach an annualized revenue run rate of $9 billion by the end of 2025, largely from Claude enterprise adoption.

Q5: What does this mean for the broader AI industry?
A: The deal reinforces the interdependence between AI developers and cloud infrastructure providers, shaping how the next wave of AI innovation will be deployed and monetized.

While Anthropic has worked with Google Cloud since early 2023, this new deal represents something much larger — a deepened, multi-year compute alliance that could reshape the balance of power in the AI infrastructure race.

Access to Google’s tensor processing units (TPUs) and advanced data centers would give Anthropic an enormous competitive edge as demand for AI model training capacity outpaces global supply. In an industry where access to compute has become the defining advantage, this partnership effectively secures Anthropic’s seat at the top tier of foundation-model development.

For Google, the proposed agreement signals that its AI cloud business is gaining ground against Amazon Web Services (AWS) and Microsoft Azure — converting strategic investments into recurring, high-margin infrastructure revenue. Investors view it as a validation that Google’s massive hardware investments are paying off, and that it’s locking in some of the most valuable AI workloads in the world.

For the broader ecosystem, the deal highlights a critical shift: AI innovation is no longer limited by ideas, but by compute access. The companies that control the fastest chips and largest data centers are increasingly shaping who can build the next generation of intelligent systems.

If finalized, this would mark a turning point — transforming a collaboration that began as a strategic partnership into a long-term, high-stakes alliance at the center of the global race to power AI.

Editor’s Note: This article was created by Alicia Shapiro, CMO of AiNews.com, with writing, image, and idea-generation support from ChatGPT, an AI assistant used for research and drafting. However, the final perspective and editorial choices are solely Alicia Shapiro’s. Special thanks to ChatGPT for assistance with research and editorial support in crafting this article.