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Anthropic nabs a million Google Cloud chips for AI

by on27 October 2025


Start-up inks deal worth tens of billions to secure computing power

Anthropic has struck a deal to grab hold of one million Google Cloud chips to train and run its artificial intelligence models, tightening its bond with one of its biggest investors.

Google, which has poured more than $3 billion into the start-up, plans to bring more than a gigawatt of AI computing capacity online next year using its custom Tensor Processing Units.

Anthropic said the deal was worth tens of billions of dollars, though it declined to give an exact figure.

Anthropic chief financial officer Krishna Rao said: “Anthropic and Google have a long-standing partnership, and this latest expansion will help us continue to grow the compute we need to define the frontier of AI."

“This expanded capacity ensures we can meet our exponentially growing demand while keeping our models at the cutting edge of the industry,” Rao said.

The move follows a frenzy of chip-sourcing activity from Anthropic’s main rival OpenAI, which has been securing capacity from Nvidia, AMD, Broadcom, Oracle and Google in deals said to total about $1.5 trillion.

These circular setups, where companies are both investors and suppliers, have fuelled talk of an AI bubble among the cocaine nose jobs of Wall Street.

AI developers are scrambling to lock in access to enough chips to stay in the game, as demand for compute keeps soaring and hardware scarcity looms.

Anthropic raised $13 billion in September, giving it a paper valuation of $183 billion. That still leaves it some way behind OpenAI’s eye-watering $500 billion mark.

The San Francisco outfit, best known for its Claude chatbot, runs its AI models on a mix of Amazon’s Trainium chips, Nvidia GPUs and Google TPUs.

According to Anthropic, this diversified setup means it can “continue advancing Claude’s capabilities while maintaining strong partnerships across the industry.”

The arrangement intensifies competition between Amazon, Nvidia and Google, each desperate to bag the next mega-contract for compute.

Google Cloud boss Thomas Kurian said: “Anthropic’s choice to significantly expand its usage of TPUs reflects the strong price-performance and efficiency its teams have seen with TPUs for several years."

Amazon remains Anthropic’s “primary” cloud partner and has already sunk $8 billion into the company. It is currently building a 2.2-gigawatt data centre complex in New Carlisle, Indiana, to help train Claude and its successors.

The e-commerce giant was said earlier this year to be mulling an even bigger investment to tighten its grip on the fast-rising model maker, according to the Financial Times.

Last modified on 27 October 2025
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