Key Points
Alphabet is poised to get the largest share of Anthropic’s cloud infrastructure spending over the next decade.
Amazon and Anthropic are working together on Project Rainier, a massive data center complex that uses nearly 500,000 AWS chips.
Anthropic has incorporated Claude into Microsoft products such as GitHub Copilot, Microsoft 365 Copilot, and Copilot Studio
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There are some new details about the upcoming initial public offering from Anthropic, the artificial intelligence start-up behind Claude. Reuters reported on Sept. 29 that the company is seeking a valuation of $2 trillion, despite posting a net loss of almost $42 billion in 2025. Anthropic also reports in the prospectus that its AI models could pose a “catastrophic or existential risk to humanity” and might even resist efforts to shut them down.
But there’s one item in the prospectus that I’m most interested in, and it has nothing to do with Anthropic’s valuation or fears about AI overreach.
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Instead, I’m drawn to the company’s disclosure that it plans to spend $518 billion in the next decade on cloud computing and AI infrastructure to support its AI expansion. And the vast majority — 80% of that spending — is non-cancelable or requires Anthropic to pay even if it doesn’t use the services.
That’s a lot of guaranteed money going to some of the biggest cloud computing companies on the planet. Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), and Microsoft (NASDAQ:MSFT) are each mentioned in the prospectus — here’s how they will benefit from Anthropic’s big spending plans.
Image source: Getty Images.
Alphabet: $111.1 billion
Alphabet and Anthropic have already been teaming up on cloud computing and AI infrastructure, including Alphabet’s tensor processing units (TPUs), which are customized processors that serve as an alternative to Nvidia’s GPUs. The companies announced in April that Alphabet will provide Anthropic with “multiple gigawatts of next-generation TPUs.”
The Anthropic prospectus details that the company will spend at least $111.1 billion with Google over the next decade. That helps explain why Alphabet has been so bullish on capital expenditures — it spent $44.9 billion on capex in the second quarter — because it is confident that the investment will pay off.
Alphabet’s revenue in the second quarter was $119.79 billion, up 24% from the previous year. But Google Cloud grew even faster, jumping to $24.76 billion in revenue, or 81.8% from the previous year.
Alphabet has already seen its investment in Anthropic pay off, at least on paper. The company reported that its private company holdings increased in the second quarter to a whopping $124.3 billion, with much of that driven by its 14% equity stake in Anthropic. Alphabet recorded $77 billion in non-operating, unrealized gains in the second quarter and pushed its net income to $112.1 billion.
Amazon: $110 billion
Amazon, which has the world’s largest cloud computing business with Amazon Web Services, comes just behind Alphabet in Anthropic’s spending plans. Reuters reports that Anthropic plans to spend at least $110 billion with Amazon over the next decade.
Like Alphabet, Amazon has partnered with Anthropic for several years. Anthropic uses Amazon’s Trainium chips to train and run some of its advanced AI models. They are also collaborating on Project Rainier, one of the largest AI compute clusters in the world, which uses nearly 500,000 AWS chips.
And Amazon has also recorded massive paper profits from its relationship with Anthropic. According to Amazon’s regulatory filings, its $13 billion investment at the end of the second quarter was at $190.4 billion — and that will go up even more if Anthropic, which was previously valued at $965 billion, can achieve a $2 trillion valuation with its IPO.
Microsoft: $31.4 billion
Microsoft Azure is the last of the “big three” cloud computing providers that dominate the market. In fact, Synergy Research says that Amazon, Alphabet, and Microsoft collectively have 63% of the global cloud computing market.
So, it’s no surprise that Microsoft will also see a strong revenue bump from Anthropic over the next decade. Microsoft has previously committed to investing $5 billion in the AI start-up. It has been working with Anthropic to make Claude readily available across Microsoft products, including GitHub Copilot, Microsoft 365 Copilot, and Copilot Studio.
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Patrick Sanders has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
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