Google to invest up to $40B in Anthropic in cash and compute

Google plans to invest up to $40 billion in Anthropic, committing $10 billion now at a $350 billion valuation, with an additional $30 billion contingent on performance targets. The investment follows the release of Anthropic's latest model, Mythos, which has significant cybersecurity applications but is restricted due to misuse concerns. Anthropic has faced user complaints about Claude limits and has secured infrastructure deals, including a $5 billion investment from Amazon and a data center agreement with CoreWeave. Google Cloud will provide 5 gigawatts of capacity over five years, expanding on a prior partnership involving Broadcom for TPU-based computing. Anthropic's valuation has surged, with investors eyeing $800 billion or more, and the company is reportedly considering an IPO as soon as October.