Google invests up to $40 billion in Anthropic, with $10 billion paid upfront, valuing the company at $350 billion.

BlockBeats News. April 25 — According to Beating monitoring, Google and Anthropic have reached a new round of investment agreement: an immediate injection of 10 billion USD in cash, based on a pre-money valuation of 350 billion USD (consistent with Anthropic’s February financing this year); an additional 30 billion USD will be delivered after Anthropic reaches specific performance milestones, but Anthropic has not disclosed the exact triggering conditions. Google also committed to providing Anthropic with 5GW of incremental data center capacity through Google Cloud over the next 5 years. Since 2022, Google has cumulatively invested about 3.3 billion USD in Anthropic; this 10 billion USD immediate investment is the largest single investment in its history to date.

This deal closely follows this week’s agreement between Anthropic and Amazon: Amazon commits to investing 5 billion USD, with an additional 20 billion USD to be added later, while Anthropic commits to purchasing more than 100 billion USD worth of chips and computing power from Amazon. Both major cloud providers are doubling down on Anthropic, and Google itself is also advancing the Gemini model line that directly competes with Anthropic.

Anthropic’s annualized revenue has jumped from 9 billion USD at the end of last year to over 30 billion USD. In February this year, Anthropic completed a 30 billion USD fundraising round at a post-money valuation of 380 billion USD, led by Singapore’s sovereign wealth fund GIC and Coatue, with participation from Microsoft and Nvidia. In mid-April, multiple VCs rushed to invest with valuations above 800 billion USD, but Anthropic declined a new funding round. Google’s entry at a valuation of 350 billion USD is even closer to a strategic pricing strategy of exchanging compute capacity for equity. Anthropic is considering an IPO as early as October.