Artificial intelligence company Anthropic PBC is reportedly in advanced discussions with Alphabet’s Google for a multi-billion-dollar deal aimed at significantly enhancing its computing capabilities and securing access to Google’s cutting-edge Tensor Processing Units (TPUs). According to Bloomberg, the proposed agreement, potentially worth tens of billions of dollars, remains under negotiation and has not yet been finalized. If completed, the partnership would further strengthen Anthropic’s access to Google’s crucial cloud computing infrastructure, deepening a relationship that already includes Google as a major investor and cloud partner.

Founded in 2021 by former OpenAI employees and headquartered in San Francisco, Anthropic is best known for its Claude family of large language models, which compete directly with OpenAI’s GPT series. The company has been aggressively raising capital to accelerate its expansion in the fiercely competitive AI sector, where immense computing resources are essential for breakthroughs, research, and scaling to meet global demand.

Google’s commitment to Anthropic is not new. The tech giant previously invested about $3 billion in the AI startup, comprising a $2 billion investment in 2023, followed by an additional $1 billion earlier this year. News of the potential new deal sparked a 2.3% rise in Google’s stock at market open on October 22, while Amazon.com, another major Anthropic investor and cloud partner, saw its shares dip by 1.5%.

Anthropic’s financial trajectory has been nothing short of remarkable. The company recently completed a $13 billion funding round, led by Iconiq Capital, with Fidelity Management and Research Co. and Lightspeed Venture Partners as co-leads. The financing nearly tripled Anthropic’s valuation to an estimated $183 billion, inclusive of all funds raised. Additionally, Anthropic has engaged in early funding discussions with Abu Dhabi–based investment firm MGX, signaling its ongoing drive to secure substantial capital for its ambitious AI initiatives.

Amazon’s stake in Anthropic is also significant, with a committed investment of approximately $8 billion. As a major AI customer of Amazon Web Services (AWS) and a prominent user of Amazon’s custom AI chips, Anthropic’s partnership with Amazon reflects the layered web of strategic alliances shaping the global AI industry.

The ongoing discussions between Anthropic and Google underscore the intensifying competition and collaboration among tech giants vying for dominance in the rapidly evolving field of artificial intelligence, where compute power, investment scale, and innovation are defining the future of the digital era.