Author: Long Yue
Source: Hard AI
The competition for computing power in the AI field is intensifying, and Google has achieved a significant victory in this critical battle. Its cloud business unit has secured a major deal with AI unicorn Anthropic, which will not only bring substantial revenue growth to Google Cloud but also pose direct pressure on its main competitor, Amazon.
According to the latest report from Morgan Stanley, Anthropic has officially announced the expansion of its collaboration with Google Cloud. This agreement, defined as &#34;milestone,&#34; indicates that Anthropic will gain access to up to 1 million Google TPU chips to support the training and servicing of its next-generation Claude model.
Morgan Stanley analysis points out that the total value of this deal could reach &#34;tens of billions of dollars.&#34; The report further estimates that based on similar collaborations like the contract between Google and Meta, this agreement may last for 6 years, with a total value between $50 billion and $80 billion.
Anthropic is expected to have over 1 gigawatt (GW) of online computing power by 2026. The report believes that the strong cost-effectiveness and efficiency of Google TPU are key factors attracting Anthropic, especially against the backdrop of Anthropic's own business projected to achieve approximately 150% compound annual growth rate between 2025 and 2027.
<h2>Google Cloud's Booster: Annual Revenue in Billions, Accelerating Growth</h2>
For Google, this deal is a significant validation of its AI cloud strategy. Morgan Stanley predicts that this will become a key driver for accelerating revenue growth for Google Cloud (GCP) in 2026 and beyond.
The mathematical model in the report shows that this collaboration is expected to bring an additional boost of 100 to 900 basis points to Google Cloud's revenue growth in 2026. More importantly, by 2027, when the collaboration is fully underway, it is expected to contribute approximately $9 billion to $13 billion in stable annual revenue for Google Cloud.
Analysts Brian Nowak and Joseph Moore believe that the key factors for Anthropic's choice of Google TPU lie in its strong cost-effectiveness and efficiency, which are crucial for Anthropic, which is in a phase of rapid expansion.
<h2>Pressure on Amazon: Major Partner Status Under Threat</h2>
For a long time, AWS has been Anthropic's most important infrastructure support. However, Google's intervention has broken AWS's exclusive advantage.
Analysts compared the approximately 1 GW of computing power provided by Google with the previous 2 GW capacity of the &#34;Project Rainier&#34; data center built by AWS for Anthropic in Indiana.
This comparison indicates that although AWS still holds about two-thirds of the market share advantage, it has failed to secure this critical incremental order, raising questions about its technological competitiveness, capacity, or pricing strategy.
The report states, &#34;AWS needs to continue to prove its computing capacity and efficiency (including performance and price)&#34; to cope with the increasingly fierce competition
<h2>The Battle of Inference and Training: The Differentiated Advantage of Google's TPU</h2>
The report also reveals an important technical detail: the computing power provided by Google Cloud will primarily focus on &#34;inference&#34; rather than &#34;training.&#34;
Morgan Stanley analysis states that there are two reasons for this: first, Anthropic has clearly identified AWS as its main &#34;training&#34; partner; second, the Google TPU v7 chip (codenamed Ironwood), which is expected to be deployed on a large scale in 2026, is designed specifically for efficient inference tasks.
This indicates that Google is establishing a strong moat in specific segments of the AI workflow with its customized AI chips, thereby carving out a differentiated competitive path in the market dominated by NVIDIA GPUs.
This article is from the WeChat public account &#34;Hard AI&#34;. For more cutting-edge AI news, please click here.
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The new AI giant Anthropic has reached a "milestone" agreement worth hundreds of billions of dollars with Google Cloud, which is expected to bring Google Cloud annual revenue of $9 billion to $13 billion by 2027. Although Amazon Web Services (AWS) remains Anthropic's primary cloud service provider, its failure to secure a key incremental computing power order has raised concerns in the market about its long-term competitiveness

- Google has secured a significant victory in the AI computing power competition by winning a major contract with AI unicorn Anthropic, enhancing its cloud revenue and pressuring Amazon.  
- The partnership allows Anthropic to access up to 1 million Google TPU chips, valued between $50 billion and $80 billion over six years, to support its next-generation Claude model.  
- This deal is expected to boost Google Cloud's revenue growth by 100 to 900 basis points in 2026, contributing approximately $9 billion to $13 billion annually by 2027.

Anthropic signs a big deal with Google Cloud: Google demonstrates strength, Amazon faces pressure