Google has committed to invest $40 billion in Anthropic, including $10 billion upfront at the AI start-up's $350 billion pre-money valuation. The tech giant's increased financial backing comes as Anthropic races to secure computing power for its growth, despite Google offering its own rival Gemini AI models.

The investment follows Anthropic's recent $5 billion deal with Amazon, which committed an additional $20 billion over time. Anthropic has agreed to spend over $100 billion on chips and computing power from the e-commerce giant. Both deals highlight the escalating competition in AI development as companies vie for computing resources.

Anthropic's annualized revenue has surged from $9 billion to over $30 billion, with the company raising $30 billion in February at a $380 billion post-money valuation. The start-up's Claude products have gained significant traction against OpenAI's offerings, particularly for business clients, though high demand has strained its computing resources.