Key Points
- AI startup Anthropic is in talks with Google for a massive computing power deal. The deal is reportedly worth tens of billions of dollars.
- Anthropic is the creator of the Claude chatbot, a major competitor to ChatGPT.
- The move highlights the immense cost of competing in the AI arms race.
- Anthropic is on a rapid growth path and is on track for $9 billion in annual revenue by the end of 2025.
AI startup Anthropic is reportedly in talks with Google for a massive deal to secure tens of billions of dollars’ worth of computing power. The potential agreement, which has not yet been finalized, would see Google provide its powerful cloud services to help fuel the growth of its AI rival.
The news sent shares of Google’s parent company, Alphabet, up over 2% in after-hours trading.
Anthropic, the creator of the popular Claude chatbot, is one of the leading competitors to OpenAI’s ChatGPT. The company is already backed by both Google and Amazon, but this new deal would represent a huge increase in the resources it has at its disposal.
The move is another clear sign of the incredible costs involved in the global AI arms race. To train and run the most advanced AI models, companies need access to a massive amount of computing power. The tech giants that own the cloud infrastructure are in a prime position to benefit.
Anthropic is on a rapid growth trajectory. The company is projecting that its revenue will more than double next year, and it’s on track to hit an impressive $9 billion in annual revenue by the end of 2025. This potential new deal with Google would provide the critical infrastructure the company needs to maintain its incredible pace.
