Broadcom signs long-term deal to develop Google’s custom AI chips
Broadcom has entered into a long-term partnership with Google to develop and supply future generations of custom AI chips, marking a significant step in the race to build advanced artificial intelligence infrastructure. The agreement, which runs through 2031, will see Broadcom design chips and related components for Google’s next-generation AI systems.
Alongside this, Broadcom has also struck a deal with AI startup Anthropic. Under this arrangement, Anthropic will gain access to around 3.5 gigawatts of AI computing capacity powered by Google’s processors, beginning in 2027. Financial details of both agreements have not been disclosed.
Investors reacted positively to the news, with Broadcom shares rising roughly 3% in after-hours trading.
The partnership highlights the growing demand for custom-built AI chips, particularly as companies look beyond Nvidia’s expensive GPUs. Google’s Tensor Processing Units (TPUs), designed specifically for AI workloads, are increasingly being positioned as a competitive alternative and are becoming a key driver of growth for Google Cloud.
Anthropic, meanwhile, continues to scale rapidly. The company revealed that its annualized revenue has surged past $30 billion in 2026, a sharp increase from about $9 billion at the end of 2025, fueled by strong demand for its AI model, Claude.
Despite expanding its use of multiple hardware platforms—including Google TPUs, Amazon’s Trainium chips, and Nvidia GPUs—Anthropic still relies primarily on Amazon Web Services as its main cloud provider and training partner.
