Alphabet Inc.’s Google will supply up to 1 million specialized AI chips to Anthropic PBC in a deal worth tens of billions, strengthening their partnership. The tensor processing units (TPUs) will bring over a gigawatt of capacity online by 2026, highlighting the escalating race for powerful AI systems.

Anthropic’s CFO, Krishna Rao, stated the expansion of the partnership with Google will help define the frontier of AI. By using Google’s TPUs, Anthropic gains access to advanced chip infrastructures, reducing reliance on GPUs. The move also shows confidence in Google’s specialized AI technology and reflects in stock prices.

Google has invested about $3 billion in Anthropic, with Amazon pledging up to $8 billion and providing custom chips through Amazon Web Services. Anthropic utilizes both companies’ cloud services for its large language models, competing with OpenAI and Google. The deepening partnership signals the importance of AI hardware in the tech industry.

Read more at Yahoo Finance.: Google, Anthropic Announce Cloud Deal Worth Tens of Billions