Google’s stake value in Anthropic has surged to $12.4 billion

Author: Dong Jing, Wall Street Insights

Alphabet’s bets on AI startup Anthropic—made through its parent company, Google—are evolving into one of the most rewarding investments in the company’s history.

Bloomberg reported on July 24 that, according to regulatory filings Alphabet submitted on Thursday, as of June 30 this year, the company’s total investment in an unnamed private company was approximately $124.3 billion. A person familiar with the matter said the figure was “mainly” driven by one of its investments—its stake in Anthropic.

The filings also showed that Alphabet recorded about $77 billion in unrealized gains on private investments in the second quarter. Together with gains from other private holdings such as SpaceX, the quarter’s total gains pushed total gains to nearly $100 billion, driving a sharp rise in Alphabet’s net profit.

Anthropic is currently preparing for a much-anticipated initial public offering, with reports suggesting that the earliest listing could be as soon as October this year. This timing means that the massive paper gains on Alphabet’s books will be further tested in the near future.

From $3 billion to over $100 billion: a high-stakes bet built through staged add-ons

Google’s investment in Anthropic was not a one-time wager; it was built up step by step through years of sustained increases.

Google initially began investing in Anthropic in 2023 with an initial amount of $3 billion. Earlier this year, Google further agreed to add up to $40 billion in additional investment, including $10 billion in upfront funding and up to $30 billion tied to operating and financial milestones Anthropic is set to achieve by 2030.

Alphabet’s filings on Thursday provided the latest update: as of June 30, its remaining committed funding for Anthropic had fallen from $30 billion at the end of the first quarter to $20 billion. This means Google added about $10 billion more to Anthropic in the previous quarter.

Anthropic has become OpenAI’s most significant competitor in the frontier AI model space, drawing dual bets from both Google and Amazon—reflecting an industry race among tech giants to lock in equity in leading AI startups.

Reports said that Google and Amazon both serve as key shareholders of Anthropic at the same time. This arrangement is quite rare in the AI investment landscape and also highlights Anthropic’s strategic position in the large-model race.

As IPO expectations heat up, Anthropic’s valuation and equity value have come under close market scrutiny. The stake held by Alphabet has already become one of the most valuable assets on its balance sheet.

The paper gains from this investment have already had a substantive impact on Alphabet’s financial performance.

Alphabet recorded about $77 billion in unrealized gains from private investments in the second quarter. Combined with gains from other private holdings, including SpaceX, the quarter’s total gains from private investments were close to $100 billion, directly boosting the company’s net profit.

However, Alphabet said it cannot provide further disclosure beyond information contained in the quarterly filing. Notably, the gains are still unrealized paper gains at present, and the extent to which they ultimately get realized will depend largely on the pricing of Anthropic’s IPO and market performance.