Anthropic's Google Deal Makes Broadcom Stock a Winner as Amazon Faces Tougher Questions
Anthropic's partnership with Google, valued at tens of billions, enhances Google's role in AI and benefits Broadcom significantly, as Google accounts for over 80% of Broadcom's AI compute sales. This deal raises questions for Amazon, which has invested heavily in Anthropic, as it may lose its leading position in AI workloads. While Nvidia remains a key supplier, the shift could impact Marvell Technology if AWS reduces its custom chip usage. Anthropic's valuation has surged to $183 billion, indicating strong demand for compute power in AI.
The partnership, worth tens of billions of dollars, will add more than a gigawatt of capacity in 2026. It makes Google a key player in training Anthropic's large language models. It also changes how major cloud and chip providers position themselves around one of AI's fastest-growing companies.
For Alphabet, the move secures a showcase client for its in-house silicon and helps drive cloud demand at a time when competition for AI workloads is intensifying.
Broadcom Stock Gains from Google's Hardware Push
Broadcom (AVGO) stands to be a major winner. The chipmaker designs and supplies Google's TPUs, which are central to its AI infrastructure. Analysts at Bank of America (BAC) estimate that Google now accounts for more than 80% of Broadcom's AI compute sales.
This exposure means Anthropic's expansion could deliver a meaningful boost to Broadcom's bottom line. Investors see it as further proof that the company's custom-silicon strategy is working. This gives Broadcom an edge in a market long dominated by Nvidia (NVDA).
Amazon's AI Strategy Faces New Pressure
Amazon (AMZN), meanwhile, has invested up to $8 billion in Anthropic and remains its "primary training partner and cloud provider." But with Anthropic moving more of its work to Google, questions are growing about whether AWS can keep its leading role.
Anthropic said it will continue building on Amazon's Project Rainier, which AWS describes as "the world's most powerful computer" for AI model training. Still, investors are watching to see if Amazon's share of Anthropic's compute spending starts to slip.
Anthropic Expansion Creates New Winners in AI Hardware
Nvidia remains a key supplier, with its GPUs still powering many of Anthropic's workloads. But the shake-up could leave chip designer Marvell Technology (MRVL) exposed if AWS scales back its custom Trainium chips.
Anthropic, now valued near $183 billion after raising $13 billion last month, continues to drive huge demand for compute power. The deal ensures that Google and Broadcom will capture a growing share of that growth, while Amazon works to keep pace.
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