Alphabet‘s Google (NASDAQ:GOOGL) (NASDAQ:GOOG) is reportedly considering a significant increase in its investment in the artificial intelligence (AI) startup Anthropic.
Google's Next Move With Anthropic
The new funding round could potentially value Anthropic at over $350 billion, Business Insider reported on Wednesday. The specifics of the deal are still being negotiated and could take various forms.
The potential deal, which remains under negotiation, could involve a strategic investment in which Google offers additional cloud computing services to Anthropic, a convertible note, or a priced funding round scheduled for early next year, according to the report.
The precise size of Google's investment and whether other investors will participate in the round are still unclear.
Google and Anthropic did not immediately respond to Benzinga‘s requests for comment.
Anthropic’s Annual Revenue Goal
This news follows a series of significant events for Anthropic. In January 2025, Google invested over $1 billion in Anthropic. Later in October, Anthropic announced plans to expand its use of Google Cloud technologies, a deal worth “tens of billions” of dollars. This move was expected to significantly boost Anthropic’s compute resources for AI research and product development.
Anthropic, backed by Google and Amazon.com (NASDAQ:AMZN), has been projecting to nearly triple its annualized revenue by next year, driven by strong demand from enterprise clients. The company aims to reach over $20 billion in annualized revenue in its base scenario and up to $26 billion in its best-case scenario for the next year.
Rival AI start-up, OpenAI, has also entered into significant partnerships with tech giants like Amazon, Advanced Micro Devices (NASDAQ:AMD), Microsoft (NASDAQ:META), and Nvidia (NASDAQ:NVDA) over the past few weeks.
Alphabet’s AI Bet Strengthens
Alphabet reported a 16% rise in third-quarter revenue, driven by strong growth in digital advertising and cloud computing. The gains are helping fund its expanding artificial intelligence initiatives. Google Cloud led the surge, generating $15.2 billion in revenue—a 34% increase from Q3 2024—underscoring the company's accelerating focus on AI infrastructure amid broader market skepticism about the sustainability of the AI rally.
On a year-to-date basis, Alphabet surged 49.37%. On Wednesday, it rose 2.41% to close at $284.75, as per data from Benzinga Pro.
Benzinga's Edge Rankings place Google in the 85th percentile for quality and the 91st percentile for momentum, reflecting its strong performance in both areas. Check the detailed report here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
