Google Seals Multi-Billion Dollar Deal to Supply Anthropic with 1M TPUs in Major AI Hardware Commitment

Alphabet Inc. (NASDAQ:GOOGL) is one of the stocks that should double in 3 years. On October 23, Alphabet Inc.’s Google and Anthropic PBC, which is a rapidly growing AI startup, announced a significant deal that will deepen their existing partnership. The agreement involves Google supplying Anthropic with up to 1 million of its specialized tensor processing units/TPUs, which are custom-designed chips used to accelerate ML workloads.

The arrangement is reportedly worth tens of billions of dollars and is slated for TPU deployment in 2026, bringing more than a gigawatt of capacity online relatively soon. This deal is one of the largest commitments yet in the AI hardware arms race, securing vastly more computing capacity for Anthropic.\

Google Seals Multi-Billion Dollar Deal to Supply Anthropic with 1M TPUs in Major AI Hardware Commitment

By tapping into Google’s TPUs, Anthropic gains access to advanced chip infrastructure outside of Nvidia Corp.’s (NASDAQ:NVDA) offerings, reducing its reliance on scarce and costly GPUs. Google has already invested ~$3 billion in Anthropic, including $2 billion in 2023 and another $1 billion early this year.

Alphabet Inc. (NASDAQ:GOOGL) offers various products and platforms in the US, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America through Google Services, Google Cloud, and Other Bets segments.

While we acknowledge the potential of GOOGL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GOOGL and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.