- Amazon-backed Anthropic is reportedly in talks with Google to secure cloud computing capacity.
- Alphabet’s shares jump, while those of Amazon, whose AWS is the primary cloud vendor for Anthropic, drop.
- The Anthropic-Google deal could be in tens of billions of dollars, Bloomberg reports.
Amazon.com, Inc.-backed Anthropic is in discussions with Google to secure cloud computing capacity valued in the high tens of billions of dollars, according to a Bloomberg report, quoting anonymous sources.
Alphabet’s shares jumped 2% in after-market trading on Tuesday following the report, while Amazon’s shares slipped 1%.
Anthropic, the company behind the Claude AI bot, is a major player in the AI market dominated by OpenAI. It would be a significant customer for Google Cloud should the deal go through.
For now, a large part of Anthropic’s cloud needs are met by Amazon Web Services. Amazon has invested about $8 billion in the San Francisco-based startup. Google, too, is an investor, having invested $3 billion.
AWS, currently recovering from a major outage that took down the world’s biggest Interest services for most of Monday, is the largest cloud computing services firm in the world, followed by Microsoft’s Azure and Google Cloud.
On Stocktwits, the retail sentiment was ‘bearish’ for AMZN and ‘extremely bullish’ for GOOGL, underscoring investor optimism that Google and its cloud offering could gain from AWS’s outage.
In September, Anthropic closed a $13 billion investment deal from investors including the Qatar Investment Authority (QIA), which tripled its valuation to $183 billion. A report earlier this month said that the company is now in talks with Abu Dhabi-based investment firm MGX for more funds.
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