Anthropic, a leader in artificial intelligence, revealed on Thursday that it is significantly increasing its collaboration with Google by utilizing its cloud services and specialized chips in a deal valued at tens of billions of dollars. This agreement involves the purchase of up to one million Tensor Processing Units (TPUs), which are custom-designed integrated circuits created by Google, as stated by the San Francisco-based startup.
The expansion is expected to enable Anthropic to bring online over a gigawatt of new computing power by the end of 2026, a move aimed at addressing the rapidly increasing demand for its Claude AI models, according to Chief Financial Officer Krishna Rao.
Having more than 300,000 business customers, Anthropic was founded in early 2021 by former employees of OpenAI who believed their previous organization was not sufficiently addressing the potential risks associated with its AI models. With backing from Amazon, the startup quickly positioned itself among the frontrunners in generative AI, especially following the launch of ChatGPT by OpenAI in November 2022, which sparked a competitive race in the field.
While Anthropic trails OpenAI in user base and public recognition, it has gained a reputation as a top performer in generative AI applications for computer programming. Meanwhile, Google has been investing heavily in AI technologies, striving to compete with industry giants such as OpenAI, Microsoft, and Amazon.
The TPUs offered by Google compete directly with the highly sought-after GPUs from Nvidia. “Anthropic”s decision to expand its use of TPUs significantly highlights the strong price performance and efficiency our teams have experienced with these units over the years,” remarked Google Cloud Chief Thomas Kurian. “We are continually innovating to enhance the efficiency and capacity of our TPUs.”
Last month, Anthropic introduced its latest generative AI model, Claude Sonnet 4.5, which it claims to be the leading model for computer programming tasks. This latest offering is also noted for its advanced capabilities that allow AI assistants to operate computers in a manner similar to human users.
Additionally, Anthropic announced plans to establish an office in India next year, as global generative AI companies seek to tap into the vast potential of the world”s most populous nation. The demand for AI solutions has surged in India, which is projected to exceed 900 million internet users by the end of the year, driven by increasing adoption among both businesses and individuals.
Currently, Anthropic is valued at approximately $183 billion, while OpenAI”s valuation has reportedly soared to around $500 billion following a private share sale, positioning it as potentially the most valuable startup globally.
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