Anthropic, Google drop massive chip deal

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Artificial intelligence giant Anthropic said Thursday it was expanding its use of Google cloud computing and specialized chips in a deal worth tens of billions of dollars.
The arrangement will include Anthropic buying as many as one million Tensor Processing Units (TPUs), which are integrated circuits custom-designed by Google, according to the San Francisco-based startup.
The expansion promises to let Anthropic bring more than a gigawatt of new computing power online by the end of 2026, enabling it to meet “exponentially growing demand” for its Claude AI models, chief financial officer Krishna Rao said in a statement.
Anthropic said it has more than 300,000 business customers.
Anthropic was created in early 2021 by former OpenAI staff who felt their employer, led by CEO Sam Altman, was not doing enough to control and prevent the potentially harmful effects of its models.
Backed by Amazon, it quickly joined the major players in generative AI that embarked on a frantic race after the arrival of ChatGPT from OpenAI in November 2022, with new models being released at a furious pace with ever-expanding capabilities.
