Anthropic Bets Big on Google Cloud with $200 Bn Deal

AI startup Anthropic has agreed to spend around $200 billion on cloud services from Google Cloud over the next five years, according to The Information. The deal is among the largest known cloud commitments in the AI industry and reflects the surging demand for computing power needed to train and run advanced AI models.

As per the report, this single commitment could account for more than 40% of Google Cloud’s recently disclosed revenue backlog. The backlog represents contracted future revenue from customers and has become a key indicator of long-term demand in the cloud business.

Expanding AI Compute Network

The agreement builds on a broader set of infrastructure partnerships Anthropic has been forming to support its rapidly growing AI workloads. In April, the company signed a deal with Google and chip partner Broadcom to access multiple gigawatts of Tensor Processing Unit (TPU) capacity. This capacity is expected to come online from 2027 onwards.

Anthropic has also struck a multi-year agreement with cloud firm CoreWeave and is set to secure nearly one gigawatt of capacity through Amazon’s infrastructure by the end of the year. The company uses a mix of hardware, including Google TPUs, Nvidia GPUs, and Amazon’s Trainium chips, to power its AI models.

According to the report, strong demand for its Claude AI models has pushed Anthropic to aggressively expand compute capacity across multiple providers.

Cloud Giants in AI Race

The massive scale of AI spending is reshaping the cloud industry. Contracts involving Anthropic and rival OpenAI now account for more than half of the $2 trillion in backlog across major cloud providers including Amazon Web Services, Microsoft Azure, and Google Cloud Platform, The Information reported.

At the same time, Alphabet, Google’s parent company, is also deepening its AI push. It is reportedly investing up to $40 billion in Anthropic, strengthening ties even as both companies compete in the global AI race.