Google and Anthropic announce cloud deal worth tens of billions of dollars
Anthropic and Google officially announced their cloud partnership Thursday, a deal that gives the artificial intelligence company access to up to one million of Google’s custom-designed Tensor Processing Units, or TPUs.
The deal, which is worth tens of billions of dollars, is the company’s largest TPU commitment yet and is expected to bring well over a gigawatt of AI compute capacity online in 2026.
Industry estimates peg the cost of a 1-gigawatt data center at around $50 billion, with roughly $35 billion of that typically allocated to chips.
While competitors tout even loftier projections — OpenAI’s 33-gigawatt “Stargate” chief among them — Anthropic’s move is a quiet power play rooted in execution, not spectacle.
Founded by former OpenAI researchers, the company has deliberately adopted a slower, steadier ethos, one that is efficient, diversified, and laser-focused on the enterprise market.
A key to Anthropic’s infrastructure strategy is its multi-cloud architecture.
The company’s Claude family of language models runs across Google’s TPUs, Amazon’s custom Trainium chips, and Nvidia’s GPUs, with each platform assigned to specialized workloads like training, inference, and research.
Google said the TPUs offer Anthropic “strong price-performance and efficiency.”
“Anthropic and Google have a longstanding partnership and this latest expansion will help us continue to grow the compute we need to define the frontier of AI,” said Anthropic CFO Krishna Rao in a release.
Anthropic’s ability to spread workloads across vendors lets it fine-tune for price, performance, and power constraints.
According to a person familiar with the company’s infrastructure strategy, every dollar of compute stretches further under this model than those locked into single-vendor architectures.
Google, for its part, is leaning into the partnership.
“Anthropic’s choice to significantly expand its usage of TPUs reflects the strong price-performance and efficiency its teams have seen with TPUs for several years,” said Google Cloud CEO Thomas Kurian in a release, touting the company’s seventh-generation “Ironwood” accelerator as part of a maturing portfolio.
Claude’s breakneck revenue growth
Anthropic’s escalating compute demand reflects its explosive business growth.
The company’s annual revenue run rate is now approaching $7 billion, and Claude powers more than 300,000 businesses — a staggering 300× increase over the past two years. The number of large customers, each contributing more than $100,000 in run-rate revenue, has grown nearly sevenfold in the past year.
Claude Code, the company’s agentic coding assistant, generated $500 million in annualized revenue within just two months of launch, which Anthropic claims makes it the “fastest-growing product” in history.
While Google is powering Anthropic’s next phase of compute expansion, Amazon remains its most deeply embedded partner.
The retail and cloud giant has invested $8 billion in Anthropic to date, more than double Google’s confirmed $3 billion in equity.
Still, AWS is considered Anthropic’s chief cloud provider, making its influence structural and not just financial.
Its custom-built supercomputer for Claude, known as Project Rainier, runs on Amazon’s Trainium 2 chips. That shift matters not just for speed, but for cost: Trainium avoids the premium margins of other chips, enabling more compute per dollar spent.
Wall Street is already seeing results.
Rothschild & Co Redburn analyst Alex Haissl estimated that Anthropic added one to two percentage points to AWS’s growth in last year’s fourth quarter and this year’s first, with its contribution expected to exceed five points in the second half of 2025.
Wedbush’s Scott Devitt previously told CNBC that once Claude becomes a default tool for enterprise developers, that usage flows directly into AWS revenue — a dynamic he believes will drive AWS growth for “many, many years.”
Google, meanwhile, continues to play a pivotal role. In January, the company agreed to a new $1 billion investment in Anthropic, adding to its previous $2 billion and 10% equity stake.
Critically, Anthropic’s multicloud approach proved resilient during Monday’s AWS outage, which did not impact Claude thanks to its diversified architecture.
Still, Anthropic isn’t playing favorites. The company maintains control over model weights, pricing, and customer data — and has no exclusivity with any cloud provider. That neutral stance could prove key as competition among hyperscalers intensifies.
WATCH: Anthropic’s Mike Krieger on new model release and the race to build real-world AI agents
Electricity demand is surging in Texas, and solar, wind, and battery storage are meeting it.
According to new data from the US Energy Information Administration (EIA), electricity demand across the Texas grid managed by the Electric Reliability Council of Texas (ERCOT) hit record highs in the first nine months of 2025. ERCOT, which supplies power to about 90% of the state, saw demand jump 5% year-over-year to 372 terawatt hours (TWh) – a 23% increase since 2021. No other major US grid has grown faster over the past year.
Solar and wind keep ERCOT’s grid steady
The biggest growth story in Texas power generation is solar. Utility-scale solar plants produced 45 TWh from January through September, up 50% from 2024 and nearly four times what they generated in 2021 (11 TWh). Wind power also continued to climb, producing 87 TWh through September – a 4% increase from last year and 36% more than in 2021.
Together, wind and solar supplied 36% of ERCOT’s total electricity over those nine months. Solar, in particular, has transformed Texas’s daytime energy mix. From June to September, ERCOT solar farms generated an average of 24 gigawatts (GW) between noon and 1 pm – double the midday output from 2023. That growth has pushed down natural gas use at midday from 50% of the mix in 2023 to 37% this year.
Battery storage is filling in the gaps
Batteries charge during the day when wind and solar generation are the highest, and they produce electricity when generation from wind and solar slows down. ERCOT began reporting battery output separately in October 2024 in its hourly grid data, and it’s clear that batteries are now helping to smooth out evening peaks. This past summer, batteries supplied an average of 4 GW of power around 8 pm, right as solar production dropped off.
Natural gas is flatlining
Natural gas is still Texas’s dominant power source, but it isn’t growing like it used to. Between January and September, gas-fired plants generated 158 TWh of electricity, compared to 161 TWh in 2023. Gas comprised 43% of ERCOT’s generation mix during the first nine months of 2025, down from 47% in the first nine months of 2023 and 2024.
More demand growth ahead
The EIA expects Texas electricity demand to keep rising faster than any other grid in the US. In its latest Short-Term Energy Outlook, the EIA projects ERCOT’s demand will climb another 14% in the first nine months of 2026, reaching 425 TWh. That means Texas will need even more solar, wind, and battery storage to keep up with its breakneck growth.
Read more: This $900 million solar farm in Texas is going 100% to data centers
The 30% federal solar tax credit is ending this year. If you’ve ever considered going solar, now’s the time to act. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links. More.
GM is recalling nearly 23,000 Chevy Equinox EV and Cadillac Optiq models due to a defect where the tire tread could fall off.
GM is recalling more Chevy Equinox EV models
In a letter sent to the National Highway Traffic Safety Administration (NHTSA), GM said it has decided to issue a safety recall for certain Chevy Equinox EV and Cadillac Optiq models from model years 2025 to 2026.
This time, it isn’t necessarily GM’s fault. The vehicles may be equipped with 21″ all-season tires that Continental Tire is recalling.
According to Continental, the tires were produced during the week of October 6, 2024, and may have a defect where the tire tread could partially or fully detach. The records show the defect is due to a nonconforming tread base rubber compound.
Owners of affected vehicles may notice unusual tread wear or bulging, vibration while driving, or tire noises. GM is unaware of any incidents related to the defect, but is issuing the recall out of an abundance of caution.
On September 18, 2025, GM inspected the assembly plant and confirmed there were no suspect tires in stock. The 21″ tires come standard on RS trims and are optional on LT1 and LT2 grades.
Although GM is recalling 22,914 Chevy Equinox EVs and Cadillac Optiqs, it estimates that only about 1% of them have the defect.
The recall includes:
- 2026 Cadillac Optiq: 214
- 2026 Chevy Equinox EV: 1,832
- 2025 Cadillac Optiq: 3,468
- 2025 Chevy Equinox EV: 17,400
GM dealers will check all four tires and replace them if needed, free of charge. Dealers were notified on October 16. Owner notification letters are expected to be mailed out on December 1, 2025.
You can contact Chevrolet’s customer service number at 1-800-222-1020 or Cadillac’s at 1-800-333-4223. GM’s recall number is N252525030. Owners can also call the NHTSA hotline at 1-888-327-4236 or visit the nhtsa.gov website for more information.
The Chevy Equinox EV is now the third best-selling EV in the US, trailing only the Tesla Model Y and Model 3. Meanwhile, Cadillac’s entry-level Optiq SUV is the fifth-most-popular luxury EV. The recall is minor and only affects a small percentage of models, so it’s not expected to have a major impact.
If you want to test one of them for yourself, we can help you get started. Check out our links below to find available Chevy Equinox EV and Cadillac Optiq models near you.
FTC: We use income earning auto affiliate links. More.
In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss Tesla’s earnings madness, Rivian layoffs, Ford pausing F-150 Lightning, and more.
The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:
We now have a Patreon if you want to help us avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.
Here are a few of the articles that we will discuss during the podcast:
Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET:
FTC: We use income earning auto affiliate links. More.
-
Sports2 years agoStory injured on diving stop, exits Red Sox game
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports3 years agoButton battles heat exhaustion in NASCAR debut
-
Sports3 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment1 year agoHere are the best electric bikes you can buy at every price level in October 2024