Alphabet to Invest $40 Billion in AI Firm Anthropic
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 27 2026
0mins
Source: NASDAQ.COM
- Massive Investment: Alphabet is set to invest up to $40 billion in AI firm Anthropic, starting with a $10 billion investment at a $350 billion valuation, significantly enhancing Alphabet's market position in the AI sector.
- Computing Capacity Support: As part of the deal, Alphabet will provide Anthropic with 5 gigawatts of computing capacity, which not only mitigates Anthropic's operational risks but also ensures stable returns for Alphabet in the future AI competition.
- Huge Market Potential: Anthropic's annual revenue is projected to soar from $1 billion in 2024 to $30 billion by 2026, with a valuation of under 12 times sales making this investment particularly attractive amid rapid advancements in AI technology.
- Strong Employee Confidence: Anthropic recently invited long-tenured employees to sell shares back, with many opting to hold onto their shares, indicating strong confidence in the company's future valuation, which serves as an additional positive signal for Alphabet's investment.
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Wall Street analysts forecast GOOG stock price to fall
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Current: 379.380
Low
255.00
Averages
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High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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