Anthropic AI and Google Cloud
Another big development has emerged in the race of Artificial Intelligence. AI startup Anthropic has decided to make a deal worth about $200 billion with Google Cloud. Under this agreement, the company will invest heavily in cloud infrastructure and AI chips in the next five years. This deal can not only create a stir in the tech industry, but can also give a new direction to the global AI competition.
This deal is an indication that more computing power is needed now than ever to train and run AI models. Especially the increasing demand for Anthropic’s Claude AI models has forced the company to purchase cloud capacity on a large scale. According to ET report, this commitment was made by Alphabet Inc. This could account for more than 40% of the cloud backlog disclosed to investors. Backlog means those contracts from which the company is going to get revenue in future. After this news, Alphabet shares also saw a rise of about 2%.
Anthropic has also done this deal
Apart from this deal, Anthropic also signed an agreement with Google and its chip partner Broadcom in April, under which it will get several gigawatts of TPU capacity. This capacity is expected to start operating from 2027. The special thing is that Alphabet Inc. It itself is investing up to 40 billion dollars in Anthropic. That means both the companies are partners as well as competitors in the AI race.
If seen globally, contracts of players like Anthropic and OpenAI now constitute more than half of the total backlog of big cloud providers like Amazon Web Services, Microsoft Azure and Google Cloud. Anthropic is continuously entering into new agreements to increase its computing capacity. Recently, the company has signed a multi-year deal with CoreWeave and also plans to acquire about 1 GW capacity through Amazon’s chips by the end of the year.
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