Google has announced plans to invest up to $40 billion in Anthropic, while also supporting the AI company’s growing computing requirements, according to Bloomberg. The Alphabet subsidiary is committing an immediate $10 billion investment at a $350 billion valuation for Anthropic, with an additional $30 billion contingent on Anthropic meeting specific performance milestones, as stated by Anthropic itself. This investment pledge comes on the heels of Anthropic releasing its latest model, Mythos, to a select group of partners this month. Anthropic describes Mythos as its most powerful model to date, with substantial applications in cybersecurity. Due to concerns over potential misuse, Anthropic has limited broader access while collaborating with chosen organizations to evaluate and mitigate these risks—though the model has already been accessed without authorization. It is also likely expensive to operate at scale.

The AI race is increasingly defined by access to the computing power required to train and deploy these systems. OpenAI has aggressively secured that capacity through a network of multi-hundred-billion-dollar deals across cloud providers, chip suppliers, and energy sources, including an expanded agreement with chipmaker Cerebras this month. Anthropic has been engaged in its own scramble. The company has faced widespread complaints about Claude usage limits in recent weeks and responded with a series of infrastructure deals. Earlier this month, Anthropic struck an agreement with cloud computing provider CoreWeave for data center capacity. It also secured an additional $5 billion investment from Amazon this week, part of a broader arrangement under which Anthropic is expected to spend up to $100 billion for approximately 5 gigawatts of compute capacity over time.

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While Google is a direct competitor in AI models, it also serves as a key infrastructure supplier to Anthropic. Anthropic relies heavily on Google Cloud for chips and infrastructure, including access to Google’s tensor processing units (TPUs), specialized chips designed for AI workloads and considered among the best alternatives to Nvidia’s in-demand processors. Anthropic’s relationship with Google predates this week’s news. Earlier this month, Anthropic announced a partnership with Google and chipmaker Broadcom, which designs custom AI chips for Google, to access multiple gigawatts of TPU-based computing capacity beginning in 2027; a subsequent Broadcom securities filing put that figure at 3.5 gigawatts. The new Google investment expands that arrangement, with Google Cloud now providing an additional 5 gigawatts of capacity over the next five years, with room to scale further.

Anthropic’s valuation stood at $350 billion as recently as February; investors have since been eager to back the company at $800 billion or more, according to Bloomberg. The company is also reportedly considering an initial public offering as soon as October.