TLDR
- Alphabet is investing up to $40B in Anthropic, starting with $10B at a $350B valuation
- Anthropic’s annualized revenue hit $30B in early April 2026, up from $1B at end of 2024
- The $350B valuation puts Anthropic at under 12x sales — cheap for its growth rate
- Alphabet will also dedicate 5 gigawatts of computing capacity to Anthropic via its TPU infrastructure
- Anthropic employees held more stock than expected in a recent tender offer, signaling confidence in a higher valuation
Alphabet is making a major bet on Anthropic, with a deal worth up to $40 billion. The investment starts with $10 billion at a $350 billion valuation, with more to follow as milestones are hit.
Alphabet already held around 14% of Anthropic before this deal. The new investment could bring its ownership back up toward the 15% cap it is reportedly bound by.
The $40B commitment comes at a busy time for Alphabet’s balance sheet. The company just closed a $32B all-cash acquisition of cybersecurity firm Wiz, and is planning up to $185B in capital expenditures this year.
Despite the heavy spending, analysts suggest Alphabet may be getting a deal. Anthropic’s annualized revenue was $1B at the end of 2024. By early April 2026, that figure had jumped to $30B — more than tripling in just four months.
At a $350B valuation, Anthropic trades at under 12 times sales. Palo Alto Networks, by comparison, trades at 12.8 times sales — but is growing at only around 15% annually.
Employees Are Holding, Not Selling
In April, Anthropic ran a tender offer allowing long-tenured employees to sell stock to outside investors at the $350B valuation. Employees sold far fewer shares than expected — a sign they believe the valuation has further to run.
Anthropic has also not yet publicly released its most powerful model, called Mythos. The model was reportedly so capable it was shown only to select technology and financial infrastructure firms first. A public launch could open another wave of revenue.
Cloud Commitment Adds Another Layer
As part of the deal, Anthropic has committed to using 5 gigawatts of computing capacity through Alphabet’s TPU infrastructure. At $35B to $50B per gigawatt to build, that theoretical spend could reach $250B over time.
That arrangement helps Alphabet justify its heavy infrastructure investment. It effectively locks in a major customer for cloud capacity that might otherwise have gone unused or underused.
Alphabet’s own Gemini model still competes directly with Anthropic’s Claude. But the investment shows Google is hedging — backing the competitor while continuing to build its own AI stack.
Anthropic is reportedly eyeing an IPO later in 2026. The current deal price of $350B would likely be well below any IPO valuation if revenue growth continues at its current pace.
Alphabet stock (GOOG) was up around 1.21% on the day of the report.
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