Google invests up to $40 billion in Anthropic, with $10 billion upfront and a valuation of $350 billion

BlockBeats News, April 25th. According to ChainNews' Beating Monitor, Google has reached a new investment agreement with Anthropic: an immediate investment of $10 billion in cash, based on a $350 billion pre-money valuation (consistent with Anthropic's valuation during their financing in February); an additional $30 billion will be provided after Anthropic reaches specific performance milestones, with Anthropic not disclosing the specific trigger conditions. Google has also committed to providing 5GW of additional data center capacity for Anthropic through Google Cloud over the next 5 years. Google has cumulatively invested around $3.3 billion in Anthropic since 2022, with this $10 billion immediate investment being the largest single transaction to date.

This transaction closely follows Anthropic's agreement with Amazon earlier this week: Amazon has committed to investing $5 billion initially, with an additional $20 billion to follow, while Anthropic has committed to purchasing over $100 billion worth of chips and computing power from Amazon. Both cloud giants are doubling down on Anthropic, while Google itself is advancing its Gemini model line directly competing with Anthropic.

Anthropic's annualized revenue has surged from $9 billion at the end of last year to over $30 billion. In February of this year, Anthropic completed a $30 billion financing round at a post-money valuation of $380 billion, led by the Singapore sovereign wealth fund GIC and Coatue, with participation from Microsoft and NVIDIA. In mid-April, several VCs valuated Anthropic at over $800 billion, but Anthropic rejected a new round of financing. Google's entry at a $350 billion valuation this time is closer to a strategic pricing based on computing power for equity swaps. Anthropic is considering an IPO as early as October.