Google, a subsidiary of Alphabet Inc., has agreed to provide Anthropic PBC with up to one million of its custom AI processors in a partnership valued at tens of billions of dollars, further strengthening ties with the rapidly expanding artificial intelligence company.

This agreement significantly increases Anthropic's computational resources while reinforcing Google's role as both a substantial investor and critical infrastructure supplier in the intensifying competition to support large-scale AI systems.

Google's tensor processing units (TPUs) — specially engineered processors designed to enhance machine learning operations — are expected to be implemented by 2026, adding over a gigawatt of processing power in the near term.

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This commitment represents one of the most significant pledges in the ongoing AI hardware competition, highlighting the escalating expenses associated with creating advanced AI technologies that demand enormous computational resources for training and operating sophisticated language models.

"Anthropic maintains an established relationship with Google, and this recent enhancement will support our continued expansion of the computational power necessary to advance AI innovation," states Krishna Rao, Anthropic's chief financial officer.

Through Google's TPU technology, Anthropic obtains access to some of the most sophisticated processor infrastructure available beyond Nvidia Corp.'s products, decreasing its dependence on limited and expensive graphics processing units.

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The decision to strengthen its collaboration with Google, which ranks as the third-largest cloud service provider after Amazon.com Inc. and Microsoft Corp., demonstrates Anthropic's trust in Google's specialized AI capabilities. Amazon's stock price declined following Bloomberg's initial coverage of the negotiations, while Google's shares increased.

Google has previously committed approximately $3 billion to Anthropic, with $2 billion invested in 2023 and an additional $1 billion in early 2024. Amazon has committed up to $8 billion and supplies the AI company with its proprietary processors through Amazon Web Services.

Established in 2021 by former staff members from OpenAI, the San Francisco company Anthropic has gained recognition primarily for developing the Claude series of large language models, which serve as competitors to OpenAI's GPT systems. Similar to other companies in the field, Anthropic has been securing substantial funding to maintain competitiveness in the AI advancement race, which experts believe will demand increased resources for both research developments and meeting market needs.

Recently, Anthropic engaged in preliminary funding discussions with MGX, an investment company based in Abu Dhabi, approximately one month following the completion of a $13 billion investment round. This funding round, spearheaded by Iconiq Capital and co-led by Fidelity Management and Research Co. alongside Lightspeed Venture Partners, increased Anthropic's valuation to nearly three times its previous worth, reaching $183 billion when including the capital raised.

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Google has previously provided approximately $3 billion in investment to Anthropic, initially pledging $2 billion to the AI company in 2023 and subsequently adding another $1 billion investment earlier this year. Amazon has also made a commitment to invest roughly $8 billion in Anthropic, which serves as an important AI client for Amazon Web Services and extensively utilizes Amazon's specialized AI processing chips.