Broadcom (AVGO) Surges on Multi-Billion Dollar AI Chip Partnerships with Google and Anthropic

Key Highlights

• Broadcom secured an extended partnership with Google for custom AI chip development and supply lasting until 2031.
• A separate agreement grants Anthropic access to 3.5 gigawatts of AI computing power through Google’s TPU infrastructure, beginning in 2027.
• Anthropic’s run-rate revenue has climbed beyond $30 billion annually, a significant jump from $9 billion reported at the close of 2025.
• Mizuho analysts project Broadcom could generate $21 billion in AI-related revenue from Anthropic during 2026, potentially doubling to $42 billion by 2027.
• The Anthropic agreement aligns with the company’s broader $50 billion investment plan for U.S. computing infrastructure.

Broadcom revealed on Monday that it has entered into an extended partnership with Google, committing to design and deliver upcoming generations of specialized AI processors and associated technologies through the year 2031. This arrangement encompasses advanced AI rack configurations and strengthens an existing collaboration that already sees Broadcom manufacturing Google’s tensor processing units (TPUs).

Simultaneously, Broadcom announced an enhanced agreement with Anthropic. Under this arrangement, the artificial intelligence company will gain access to approximately 3.5 gigawatts of computational resources powered by Google’s TPU technology, scheduled to become operational from 2027 forward.

Neither agreement included public disclosure of specific financial terms in the regulatory filing.

These announcements align with previous statements made by Broadcom Chief Executive Hock Tan during the company’s most recent earnings conference call. Tan had indicated that Broadcom was already delivering roughly 1 gigawatt of computing power to Anthropic through Google’s TPUs in 2026. He projected that requirement would expand beyond 3 gigawatts by the following year.

Broadcom Inc., AVGO

Anthropic’s explosive growth validates these projections. The organization confirmed its annualized revenue now exceeds $30 billion, representing substantial growth from approximately $9 billion recorded at 2025’s conclusion. Additionally, Anthropic disclosed it currently serves over 1,000 enterprise customers each contributing more than $1 million annually — representing 100% growth in just eight weeks.

Wall Street Projects Significant Revenue Growth for Broadcom

Mizuho’s research team, headed by Vijay Rakesh, quantified the potential financial impact of these partnerships for Broadcom. Their analysis suggests $21 billion in AI-driven revenue specifically from Anthropic in 2026, with projections reaching $42 billion throughout 2027. These represent analyst forecasts rather than confirmed contract valuations.

Anthropic characterized the new deal as part of its comprehensive commitment to deploy $50 billion toward U.S.-based computing infrastructure. The organization trains and operates its Claude language model using diverse hardware platforms, including AWS Trainium processors, Google TPUs, and Nvidia GPUs. Amazon continues serving as Anthropic’s principal cloud infrastructure and model training partner.

The Claude application experienced significant mainstream visibility earlier this year, temporarily achieving the number one position among free applications in the U.S. Apple App Store during February, coinciding with widespread media coverage of tensions between Anthropic and the Pentagon.

Broadcom’s Custom Silicon Efforts Extend to OpenAI Partnership

Broadcom’s specialized chip development initiatives aren’t confined to the Google-Anthropic ecosystem. The semiconductor company is simultaneously partnering with OpenAI on custom processor designs.

Meanwhile, OpenAI has pledged to deploy six gigawatts of AMD GPU capacity, with the initial gigawatt anticipated during the latter half of this year. Both OpenAI and Anthropic maintain substantial dependence on Nvidia GPU infrastructure accessed via leading cloud service providers.

Broadcom’s stock responded immediately to Monday’s disclosure, posting approximately 3% gains in after-hours trading.