Google is deepening its bet on Anthropic as frontier AI becomes as much an infrastructure race as a model race. The Alphabet subsidiary plans to invest up to $40 billion in the AI company, with an initial $10 billion investment at a reported $350 billion valuation and another $30 billion tied to performance milestones. The deal would strengthen Anthropic’s access to Google Cloud infrastructure and specialized TPU capacity as leading AI labs compete to secure the compute needed to train and deploy advanced models.
The funding follows the recent limited release of Mythos, Anthropic’s most advanced model to date, which the company claims possesses superior cybersecurity capabilities. Due to concerns regarding the model’s ability to exploit software vulnerabilities, Anthropic has restricted general access to select partners. The high operational costs of Mythos have necessitated a flurry of infrastructure deals, including recent multi-billion dollar agreements with Amazon and CoreWeave.
Anthropic is reportedly exploring an initial public offering as early as October 2026, with Wall Street banks anticipating a raise exceeding $60 billion. While the firm was valued at $350 billion in February, investor interest has recently trended toward a valuation exceeding $800 billion. The company aims to spend approximately $100 billion over the coming years to secure the massive compute capacity required to compete with rivals like OpenAI.