Google and Anthropic are both companies that have placed some big bets on the AI space, and now the two are working together through a partnership for a new cloud deal. Both companies officially announced the new partnership this week, and it has the potential to be a big money maker for Google. Google already makes a substantial amount of money from its cloud services, ad business, and other avenues, but this is shaping up to be what is likely an easy win for the search company.
According to the report, Google is providing Anthropic with Tensor Processing Units for Anthropic’s own endeavors. In other words, Anthropic is buying AI chips from Google to use in its future AI advancements. This deal is worth multiple billions, and is yet another way that Google is solidifying itself as a major player in the AI space. Google already operates and offers several AI-powered products and services from Gemini to NotebookLM and beyond. This deal with Anthropic allows it to stay within the AI space, but without many of the other hurdles it might have to go through if it were announcing a new AI product or service under its own umbrella. Essentially, Google is operating a little more like NVIDIA here. Providing the compute hardware, while Anthropic plans to use that for its own services.
Google will provide up to 1 million TPUs to Anthropic as part of the cloud deal
This is where things really start to add up in terms of revenue. Exact numbers haven’t been provided in terms of how many TPUs Anthropic is actually buying. However, it’s reported that the deal allows it to buy up to 1 million of Google’s custom-designed TPUs. The company is “expected to bring well over 1-gigawatt of AI compute capacity online” next year.
That 1 gigawatt could cost Anthropic close to $50 billion, and $35 billion of that is said to be the potential cost of the chips. So, Google could stand to make around $35 billion from this deal. Google Cloud CEO Thomas Kurian praises Anthropic for recognizing the “strong price-performance and efficiency” of Google’s TPUs for several years.
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