Anthropic has reportedly committed to spend $200 billion with Google Cloud over five years under a recent agreement. The commitment suggests that Anthropic accounts for more than 40% of the revenue backlog that Google recently disclosed to investors. The backlog that reflects long-term contractual commitments from cloud customers.
Following the report, Alphabet, the parent company of Google, shares rose about 2% in extended trading.
In April, Anthropic inked a deal with Google and Broadcom for multiple gigawatts of tensor processing unit capacity, which it expects to come online starting in 2027. Also, Alphabet is investing up to $40 billion in Anthropic, deepening ties with the AI startup even as the two compete in the global artificial intelligence race.
According to the report, contracts involving Anthropic and OpenAI now represent more than half of the $2 trillion in backlog across major cloud providers including Amazon Web Services, Microsoft Azure and Google Cloud.
Strong demand for its Claude family of AI models has driven Anthropic to sign a series of major agreements to acquire more computing capacity.
Last month, Anthropic struck a multi-year deal with cloud infrastructure firm CoreWeave and is also set to secure nearly 1 gigawatt of capacity via Amazon's chips by year-end.
Anthropic has said it trains and runs Claude on a range of AI hardware, including Amazon Web Services' Trainium, Google TPUs and Nvidia GPUs.
Meanwhile, Alphabet is on the cusp of overtaking Nvidia as the world's most valuable company, driven by a record stock rally fueled by its artificial intelligence efforts and booming cloud business.
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