Alphabet Inc. (NASDAQ:GOOG) saw its stock move higher on Wednesday after reports indicated that Anthropic is in advanced discussions with Google for a cloud services agreement that could be valued in the tens of billions of dollars.
The shares of the tech giant rose 1.3% in premarket trading following a report from Bloomberg News stating that the AI startup is negotiating to secure a large amount of cloud computing capacity from Google Cloud.
People familiar with the talks said the potential deal could reach a value in the “high tens of billions of dollars,” positioning it as one of the largest AI infrastructure agreements to date.
Under the proposed arrangement, Anthropic would gain access to Google’s cloud infrastructure to power the expansion and refinement of its AI technologies. The negotiations underscore the intense competition among major cloud providers as they race to lock in partnerships with leading artificial intelligence firms.
Anthropic — the developer behind the Claude AI assistant, a direct rival to OpenAI’s ChatGPT — has previously received considerable funding from Google. Securing additional cloud capacity would bolster the company’s ability to scale its models and maintain its competitive edge in the fast-growing AI sector.
The potential agreement also reflects how cloud contracts with prominent AI companies are becoming a crucial driver of future growth for tech giants, further cementing their role at the core of the AI ecosystem.