Alphabet Inc. is investing up to $40 billion in artificial intelligence startup Anthropic.
The deal includes an initial $10 billion cash payment. Alphabet will provide an additional $30 billion if Anthropic achieves specific performance milestones.
This move follows Amazon’s recent commitment to invest up to $25 billion in the same startup. The investment significantly deepens the strategic partnership between Alphabet and Anthropic.
Alphabet aims to drive growth for its Google Cloud division through this deal. The partnership is also expected to increase demand for Alphabet's custom Tensor Processing Units (TPUs).
Market reaction to the announcement has been positive.