Key Highlights
- Broadcom secured a multi-year partnership with Google for custom AI chip development and delivery extending through 2031.
- A separate agreement grants Anthropic access to approximately 3.5 gigawatts of AI computational power through Google’s TPU infrastructure, launching in 2027.
- Anthropic’s run-rate revenue has exceeded $30 billion annually, representing a significant jump from $9 billion recorded at 2025’s close.
- 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 AI company’s $50 billion commitment to expand U.S. computing infrastructure.
On Monday, Broadcom revealed it has entered into a comprehensive long-term partnership with Google focused on designing and delivering advanced custom artificial intelligence chips and associated components through the end of 2031. This arrangement encompasses next-generation AI rack infrastructure and strengthens an existing collaboration that already sees Broadcom manufacturing Google’s tensor processing units (TPUs).
$AVGO is up over 3% after saying it signed a long-term deal with $GOOGL to develop and supply custom TPUs for Google’s future generations of AI chips. https://t.co/SBzNpn5Cbq pic.twitter.com/HzrrUhmvYD
— Shay Boloor (@StockSavvyShay) April 6, 2026
Simultaneously, Broadcom announced an enhanced partnership with Anthropic. This expanded agreement provides the AI company with approximately 3.5 gigawatts of computational capacity powered by Google’s TPU technology, scheduled to become operational beginning in 2027.
Neither agreement included publicly disclosed financial details in the regulatory filing.
These announcements come on the heels of statements made by Broadcom CEO Hock Tan during the previous month’s earnings presentation. Tan indicated that Broadcom was currently delivering approximately 1 gigawatt of computing power to Anthropic through Google’s TPU infrastructure in 2026. He projected this demand would escalate beyond 3 gigawatts throughout 2027.
Anthropic’s financial trajectory supports these expansion plans. The organization reported that its annualized revenue has surpassed $30 billion, a substantial increase from approximately $9 billion documented at the conclusion of 2025. Additionally, Anthropic revealed it currently serves over 1,000 enterprise customers, each contributing more than $1 million annually — representing a 100% increase from just two months prior.
Wall Street Projects Substantial Revenue Growth for Broadcom
A team of Mizuho analysts headed by Vijay Rakesh quantified the potential financial impact of these agreements on Broadcom’s performance. Their analysis suggests $21 billion in AI-generated revenue attributable to Anthropic during 2026, with projections indicating growth to $42 billion throughout 2027. These figures represent analyst forecasts rather than confirmed contractual amounts.
Anthropic characterized the new partnership as an extension of its overarching commitment to deploy $50 billion toward U.S. computing infrastructure development. The organization develops and operates its Claude AI model utilizing diverse hardware platforms, including AWS Trainium processors, Google TPUs, and Nvidia GPUs. Amazon continues to serve as Anthropic’s principal cloud infrastructure and training partner.
The Claude application experienced a notable spike in consumer interest earlier this year, temporarily claiming the position of leading free application on the U.S. Apple App Store during February, coinciding with a high-profile disagreement between Anthropic and the Pentagon that garnered widespread media coverage.
Broadcom Pursues OpenAI Custom Silicon Partnership
Broadcom’s custom chip development initiatives extend beyond the Google-Anthropic ecosystem. The semiconductor company is simultaneously engaged in custom chip development collaboration with OpenAI.
OpenAI has separately committed to deploying six gigawatts of AMD GPU capacity, with initial deployment of one 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 share price appreciation of approximately 3% occurred in after-hours trading immediately following Monday’s partnership announcements.
