Broadcom (AVGO) has agreed to produce future versions of artificial intelligence (A.I.) microchips for Google parent company Alphabet (GOOGL) and startup firm Anthropic.
The deal will see Broadcom give Anthropic access to about 3.5 gigawatts worth of computing capacity that draws on Google’s A.I. processors.
The agreement between the three companies highlights the rising demand for A.I. infrastructure. Anthropic’s Claude A.I. chatbot has become the top free app listed in Apple’s (AAPL) App Store.
Anthropic’s annualized revenue has exceeded $30 billion U.S., up from $9 billion U.S. at the end of last year.
Broadcom’s executive team recently said that they have an arrangement to provide Anthropic with one gigawatt of computing power using Google’s tensor processing units (TPUs).
By 2027, that demand is expected to surpass three gigawatts of computing power, according to Broadcom.
Analysts at Mizuho Financial Group (MFG) have estimated that Broadcom will receive $21 billion U.S. in A.I. revenue from Anthropic in 2026 and $42 billion U.S. in 2027.
AVGO stock has risen 104% in the last 12 months to trade at $314.43 U.S. per share.
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