Google Is Getting a Screaming Bargain on Its New Anthropic Investment. Here's Why.
Alphabet is investing up to $40 billion in AI company Anthropic, starting with a $10 billion investment at a $350 billion valuation. The deal may be a bargain for Alphabet, as Anthropic's valuation may be understated given its rapid revenue growth.
Alphabet is set to invest up to $40 billion in AI company Anthropic. The investment will start with $10 billion at a $350 billion valuation, with subsequent investments tied to milestones. Anthropic's revenue has grown from $1 billion in 2024 to $30 billion in April 2026. The company's valuation of $350 billion is considered low given its growth rate, making the deal potentially favorable for Alphabet. Anthropic has not yet released its most powerful model, Anthropic Mythos, which could drive further adoption and revenue. The investment will also include Alphabet dedicating 5 gigawatts of computing capacity to Anthropic.
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