Google to supply a million AI chips to Anthropic

Alphabet’s Google will provide up to 1 million of its advanced Tensor Processing Units (TPUs) to AI startup Anthropic in a deal valued at tens of billions of dollars.

Announced on Thursday, the agreement will give Anthropic massive computing capacity by 2026, adding more than a gigawatt of power for training large AI models.

The deal strengthens Google’s position as both a key investor and major cloud partner in the AI hardware race.

Anthropic’s CFO Krishna Rao said the expansion will help the company “define the frontier of AI.” With access to Google’s custom AI chips, Anthropic can rely less on costly Nvidia GPUs.

Google has already invested $3 billion in Anthropic, while Amazon has pledged up to $8 billion and offers its own chips through AWS.

Anthropic’s valuation recently soared to $183 billion after a $13 billion funding round led by Iconiq Capital.