Alphabet Inc.’s Google has solidified its strategic partnership with AI developer Anthropic by securing approximately $35 billion in financing for data centers dedicated to Anthropic’s expanding infrastructure needs. The deal brings together semiconductor giant Broadcom and investment firms Apollo Global Management and Blackstone, with UK-based cloud provider Fluidstack spearheading a broader $50 billion compute expansion in the US on behalf of the Claude model creator.
The financing, centered on five US-based data centers, relies on Google’s backing of lease obligations and will utilize Google’s proprietary Tensor Processing Units (TPUs). This builds on earlier plans to make multiple gigawatts of TPU capacity available starting in 2027, underscoring the massive computing power required by advanced AI systems. The collaboration highlights intensifying competition among major cloud providers to supply AI infrastructure.
Separately, Alphabet raised over $19 billion through a mandatory convertible preferred stock offering carrying a 6.25% annual dividend yield, part of an overall $85 billion+ equity raise to fund $180–$190 billion in projected AI capital expenditure this year. The two issues trade under tickers GOOGM and GOOGN on Nasdaq, converting into common stock with a 25% premium. With a conversion range of roughly $360–$440 per share, investors face downside if Alphabet’s Class A stock falls below that floor but enjoy full upside above it. Wall Street maintains a Moderate Buy consensus on GOOGL, with revenue and earnings beating estimates in the latest quarter, and the Gemini app reportedly doubling monthly users to 900 million.
