Google to Supply Anthropic with Up to One Million Dedicated AI Chips in Deal Value Potentially Expected to Explode Multi-Billion Dollars

Alphabet's Google will supply Anthropic PBC with up to one million dedicated artificial intelligence (AI) chips in a multi-billion dollar deal, further deepening its partnership with the fast-growing AI startup.

The deal, announced Thursday, will significantly boost Anthropic's computing power while solidifying Google's position as a major investor and key AI infrastructure provider.

Google said in a statement that the TPUs, Google's proprietary design for accelerating machine learning tasks, are expected to be deployed by 2026 and will provide over 1 gigawatt of computing power. The scale of this deal, one of the largest in the current AI hardware race, highlights the escalating costs of the training and inference computing power required to develop cutting-edge AI systems.

"Anthropic and Google have a long-standing partnership, and this expanded partnership will help us continue to grow our computing power and push the boundaries of AI," said Anthropic CFO Krishna Rao in a statement.

By using Google's TPUs, Anthropic will gain access to one of the most advanced chip infrastructures available besides Nvidia, reducing its reliance on scarce and expensive GPUs. The company's decision to deepen its partnership with Google, the world's third-largest cloud provider, also demonstrates its confidence in Google's specialized AI technology.

Google has invested approximately $3 billion in Anthropic to date, including $2 billion in 2023 and an additional $1 billion earlier this year. Meanwhile, Amazon has pledged up to $8 billion and will provide the AI ​​startup with its own chips through Amazon Web Services (AWS). Anthropic relies on both companies' cloud services to train and deploy its Claude family of models, which compete with OpenAI's GPT product and Google's Gemini.