Anthropic and Google said to be negotiating multibillion-dollar cloud services agreement

[Artificial Neural Network Concepts - Machine Learning]
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Anthropic PBC (ANTHRO [https://seekingalpha.com/symbol/ANTHRO]) is in discussions with Alphabet's Google (NASDAQ:GOOG [https://seekingalpha.com/symbol/GOOG]) (NASDAQ:GOOGL [https://seekingalpha.com/symbol/GOOGL]) about a deal that would provide the artificial intelligence company with additional computing power valued in the high tens of billions of dollars, _Bloomberg _reported, citing people familiar with the matter.

The plan, which has not been finalized, involves Google providing cloud computing services to Anthropic, according to the people, who asked not to be named because the information is private.

The deal will allow Anthropic to use Google’s tensor processing units, or TPUs — the company’s chips that are custom designed to accelerate machine learning workloads, the report said.

The tech giant is a previous investor in and cloud provider for, Anthropic (ANTHRO [https://seekingalpha.com/symbol/ANTHRO]), which is also backed by Amazon (AMZN [https://seekingalpha.com/symbol/AMZN]).

Anthropic, founded in 2021 by former OpenAI employees, has “nearly” double the revenue share when compared to OpenAI, as evidenced by recent reporting [https://seekingalpha.com/news/4504382-anthropic-eyes-9b-in-annual-recurring-revenue-by-years-end-report#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews].

The company, which launched its Claude chatbot in March 2023, said its revenue run-rate had reached more than $5B as of August. Anthropic also said that it has more than 300,000 business customers and the number of customers who spend more than $100,000 with it has grown “nearly” seven times in the past year.

Google parent Alphabet (NASDAQ:GOOGL [https://seekingalpha.com/symbol/GOOGL]) saw its stock jump 3.1% in after-hours trade following the news.

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