Alphabet Inc. is planning a massive investment of up to $40 billion in Anthropic, showing how fast the AI race is heating up. The deal starts with an immediate $10 billion cash investment, valuing Anthropic at around $350 billion. Another $30 billion may follow if the company meets key growth and computing targets.
Anthropic has quickly gained popularity with its Claude AI models, especially among developers. Its tool, Claude Code, is widely used to speed up coding tasks. The company’s growth has also been strong, with its annual revenue run rate crossing $30 billion in April 2026, up from about $9 billion at the end of 2025.
The move comes just days after Amazon signalled plans to invest up to $25 billion in Anthropic. This highlights rising competition among tech giants, as each tries to lead in AI development and secure future dominance.
To support its expansion, Anthropic is focusing heavily on computing power. It has partnered with Broadcom and CoreWeave to strengthen its infrastructure and scale its systems.
The company also plans to use Amazon’s chips to reach nearly one gigawatt of compute capacity by the end of the year. It had earlier outlined a $50 billion plan to build data centers in the United States to support long-term AI growth.
Despite working together, Alphabet and Anthropic remain competitors in the AI space. This creates a mix of partnership and rivalry, as both companies continue to build their own AI technologies.
Investor interest in Anthropic remains strong. The company previously raised $30 billion at a $380 billion valuation, and its value could rise further as demand for AI tools continues to grow. Some of its AI releases have even caused sharp movements in global software stocks.
Overall, this investment could become one of the biggest deals in AI history. It shows that companies are not just building smarter AI, but also investing heavily in the infrastructure needed to power it.
Also Read: Anthropic Accidentally Exposes Claude Code Source Code
