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Investing.com -- Morgan Stanley said Anthropic’s expanded partnership with Google Cloud could “potentially add ~100-900bps upside to ‘26 Cloud rev (with a full annual ~$9bn-$13bn contribution to come in ‘27).”
In a note on Friday, analyst Brian Nowak told investors that the “Anthropic/GCP deal [is] another tailwind to an already accelerating GCP business.”
The agreement gives Anthropic access “to up to 1 million TPUs to provide additional capacity required to train and serve next generations of Claude models.”
Morgan Stanley states that the deal, “worth tens of billions of dollars,” means Anthropic “expects to have well over a gigawatt of capacity online in 2026.”
The firm believes “GOOGL TPU’s strong price-performance ratios and cost efficiencies were likely a key factor in Anthropic’s decision, especially as the company seeks to scale its compute capacity to meet its ramping growth.”
Furthermore, the bank feels the announcement “speaks to the strength of GOOGL’s AI Cloud offering across the full stack of infra, models and services.”
It expects “the workloads on GCP will skew towards inference given 1) Anthropic disclosed that AMZN remains their primary training provider and 2) the TPU v7 Ironwood chip, set to ramp in 2026, is designed specifically for inference.”
Morgan Stanley added, “We see Anthropic likely spending ~$50bn-$80bn with GCP over 6 years...with full year contribution expected in ’27,” calling the deal “another tailwind to an already accelerating GCP business.”