Alphabet Stocks Rise with Strategic Growth with Anthropic

Alphabet (NASDAQ:GOOGL) stock rose by 1.15% in after-hours trading on Thursday following the news that AI company Anthropic plans to expand its use of Google Cloud's TPU chips. This expanded partnership stands out as Anthropic's largest commitment involving Google’s Tensor Processing Units (TPUs).

As part of this agreement, Anthropic will gain access to over a gigawatt of computing power, slated to come online in 2026. This will provide the AI company with the necessary resources to train and serve future Claude AI models.

Anthropic established a strategic partnership with Google Cloud in 2023, citing the price-performance ratio and efficiency of TPUs as the main reasons for their decision to expand. Currently, they offer Claude models to businesses through Google Cloud’s Vertex AI platform and Google Cloud Marketplace.

Google Cloud CEO Thomas Kurian stated, “The decision by Anthropic to significantly expand its use of TPUs reflects the strong price-performance and efficiency our teams have seen with TPUs for years.”

Anthropic's CFO Krishna Rao emphasized that the expanded capacity will help the company meet the “exponentially increasing demand” for its AI models and maintain its competitive advantage. Currently, many businesses, including Figma, Palo Alto Networks, and Cursor, are using Anthropic's Claude models on Google Cloud.

This announcement confirmed rumors that had emerged in previous days.