Billion-Dollar Deal Between Google and Anthropic

San Francisco-based artificial intelligence company Anthropic has signed a multi-year agreement worth a billion dollars with Google to provide the additional computing power needed for its chatbot Claude.

Anthropic announced on Thursday that the agreement will allow access to up to 1 million of Google's artificial intelligence processors and that it is worth “tens of billions of dollars.” Additionally, the agreement is expected to provide over 1 gigawatt of capacity online by 2026.

A gigawatt is defined as an amount that could power approximately 350,000 homes when referenced to an energy plant, a fact verified by the U.S. Energy Information Administration.

Google refers to its specialized AI processors as Tensor Processing Units (TPU). Anthropic's AI systems also work on Nvidia processors and Amazon's cloud computing division. Amazon is Anthropic's first major investor and is also its primary cloud provider.

The private company Anthropic was founded in 2021 by former OpenAI leaders. Last month, it raised an additional 13 billion dollars in investments, bringing its valuation to 183 billion dollars. The AI assistant Claude competes with OpenAI's ChatGPT and others to support business clients in coding and other tasks.