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Google and Amazon’s Tug of War Over Anthropic: Report. What It Means for the Stocks.

Oct 22, 2025 08:24:00 -0400 by Adam Clark | #AI

Data centers used to power artificial intelligence have become the main driver of cloud-computing growth. (Dreamstime)

Key Points

Anthropic is the hottest private AI company after OpenAI. Now it looks to be at the center of a tug of war between its investors Amazon.com and Google-parent Alphabet .

Anthropic has held talks with Google about a potential cloud-computing deal worth tens of billions of dollars which would provide the AI start-up with access to Google’s own AI chips, Bloomberg reported Tuesday, citing people familiar with the matter.

Such a deal would be a boost for Google’s cloud-computing business. And it would raise significant questions over Anthropic’s relationship with Amazon.

Anthropic, Google, and Amazon didn’t immediately respond to Barron’s requests for comments early on Wednesday.

Alphabet shares were up 1.5% in morning trading, while Amazon shares were down 1.7%.

Anthropic said Amazon was its “primary cloud and training partner” in November last year. However, Anthropic also uses Google’s services and Wall Street analysts think it has shifted more toward the search company’s infrastructure.

“Anthropic…today utilizes Google Cloud as its primary GPU [graphics-processing unit] cloud provider,” wrote UBS analyst Karl Keirstead in a research note.

That’s part of the reason Keirstead thinks the market is expecting 35% growth for Google Cloud when Alphabet reports third-quarter earnings next week, compared with 18% growth for Amazon Web Services.

Amazon has committed up to $8 billion of investment to Anthropic, which was founded by former OpenAI engineers in 2021. Google has invested about $3 billion in Anthropic, according to Bloomberg, which noted the deal between the companies hasn’t been finalized.

Amazon’s investment so far has looked like a smart bet. In September, Anthropic said it raised $13 billion in new capital in a deal that valued the start-up at $183 billion. At the time, the company said its revenue had reached an annualized run rate surpassing $5 billion, from $1 billion at the beginning of the year.

A major deal with Google wouldn’t necessarily mean Anthropic isn’t also going to keep growing its business with Amazon and even use it as its primary partner. After all, rival AI start-up OpenAI has committed to a cloud-computing deal worth $300 billion with Oracle, but also has infrastructure agreements with Microsoft and CoreWeave.

However, it does raise the stakes for Amazon’s Project Rainier, an AI supercomputer using its in-house Trainium chips. Anthropic was expected to use the supercomputer and Amazon’s Trainium and Inferentia chips to train its future AI models. The report could raise concerns Anthropic will opt to use Google’s AI hardware instead.

“Amazon Web Services continues to see customer growth across both the Inferentia and Trainium product lines,” Amazon told Barron’s earlier this year.

Write to Adam Clark at adam.clark@barrons.com