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Anthropic, Google Discuss Cloud Deal Worth Tens of Billions, Bloomberg Reports

Anthropic, the AI startup behind the Claude chatbot, is in advanced discussions with Google (GOOGL.O) over a massive cloud computing deal valued in the high tens of billions of dollars, according to Bloomberg News, citing people familiar with the talks. The agreement, which is not yet finalized, would see Google provide cloud infrastructure and computing power to support Anthropic’s fast-growing AI operations.

The potential deal underscores the increasing cost and scale of AI development, as companies like Anthropic, OpenAI, and Microsoft-backed Mistral race to secure computing resources needed to train and deploy large language models.

Alphabet shares rose 2.3% after hours following the report, reflecting investor optimism over Google Cloud’s role as a major infrastructure provider for next-generation AI systems. Google declined to comment, while Anthropic did not immediately respond to requests for clarification.

Anthropic, which counts Google and Amazon (AMZN.O) among its biggest investors, has seen rapid adoption of its enterprise AI products and is reportedly on track to reach a $9 billion annual revenue run rate by the end of 2025, nearly tripling its current pace, according to a Reuters report last week.

The collaboration could deepen Google’s long-standing relationship with Anthropic, which already relies heavily on Google Cloud for model training. If completed, the deal would be among the largest cloud infrastructure partnerships ever in the AI sector, solidifying both firms’ positions in the escalating competition against OpenAI and Microsoft.

Anthropic launches low-cost Haiku 4.5 model to make AI more accessible for businesses

AI startup Anthropic has unveiled a major update to its smallest model, Haiku, as it seeks to make artificial intelligence more affordable and practical for companies outside Silicon Valley. The new version, Haiku 4.5, costs about one-third as much as Anthropic’s Sonnet 4 and just one-fifteenth the price of its flagship Opus model, while matching or outperforming mid-tier models on tasks like coding and data synthesis.

Chief Product Officer Mike Krieger said the upgrade reflects a growing demand among traditional businesses for cost-effective AI tools that still deliver high performance. “Small models really help because they can be a more economical way of deploying at scale,” Krieger told Reuters, noting that cheaper AI makes it easier for firms to integrate intelligent assistants into systems used by thousands of employees.

Anthropic’s enterprise business now accounts for about 80% of its revenue, with over 300,000 corporate customers using its AI tools internally or within their products. The company’s annual revenue run rate has reached nearly $7 billion, underscoring its rapid ascent in the AI sector.

Founded in 2021 by former OpenAI employees, the San Francisco-based company has become one of the strongest challengers to OpenAI, backed by a recent valuation of $183 billion.

Anthropic’s smaller models, such as Haiku, aim to balance power and affordability at a time when companies are pushing back against the massive computational costs of training and running large-scale AI systems. The firm says businesses can even combine models — using advanced ones for strategic planning and smaller ones for everyday tasks like information synthesis and web searches.

Anthropic to open first India office in 2026 amid AI boom

Anthropic, the artificial intelligence company backed by Google and Amazon, announced plans to open its first office in India next year as demand for AI tools accelerates across the country.

The expansion marks a major step in Anthropic’s global growth, with India already standing as its second-largest market for the Claude chatbot, which rivals OpenAI’s ChatGPT. Claude is popular among developers for its strong coding capabilities and multilingual features.

The new office will be located in Bengaluru, India’s leading technology hub, and operations are set to begin in early 2026. CEO Dario Amodei will visit India this week to meet with government officials and business partners, the company said.

India’s rapidly growing tech ecosystem — fueled by a billion internet users, rising corporate investment, and a strong talent base — has drawn top AI firms into competition. OpenAI, backed by Microsoft, is also preparing to open its first Indian office in New Delhi later this year.