Google expands AI push with multibillion chip deal and $40B Anthropic investment
Google Cloud signed a multibillion-dollar deal to provide Nvidia GB300 chips to AI startup Thinking Machines Lab, expanding its infrastructure tier alongside Anthropic and Meta competitors. Meanwhile, Google will invest up to $40 billion in Anthropic, including an initial $10 billion injection and $30 billion conditional on performance milestones.
1. Google’s Multibillion Deal with Thinking Machines Lab
At Google Cloud Next, Google finalized a multibillion-dollar agreement to supply Nvidia GB300 chips and cloud services to Thinking Machines Lab, placing the startup on the same infrastructure level as Anthropic and Meta. The deal grants TML early access to cutting-edge hardware and is expected to generate recurring revenue for Google Cloud as AI workloads scale.
2. $40 Billion Investment Commitment to Anthropic
Google plans to invest up to $40 billion in AI firm Anthropic, starting with a $10 billion upfront contribution and reserving $30 billion for milestone-based funding. The commitment deepens Google’s alliance with Anthropic, which will deploy custom Google chips and cloud resources to power its next-generation AI models.
3. Implications for Google Cloud and AI Leadership
These dual initiatives reinforce Google’s position in the AI infrastructure race, driving cloud revenue growth while securing partnerships with leading startups. However, the scale of capital commitments and discounted cloud pricing could pressure margins, even as Google aims to outpace AWS and Microsoft in enterprise AI adoption.