Key Highlights
- Broadcom has secured a strategic partnership with Google to design and deliver custom AI processors through 2031.
- A separate agreement provides Anthropic with 3.5 gigawatts of AI computing power through Google’s TPU infrastructure, launching in 2027.
- Anthropic’s annual revenue run rate has exceeded $30 billion, a substantial increase 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 in 2027.
- The computing deal aligns with Anthropic’s broader $50 billion investment plan in U.S. data center infrastructure.
On Monday, Broadcom revealed it has entered into a strategic, multi-year partnership with Google focused on the development and production of advanced custom AI processors and associated technologies extending through 2031. This collaboration encompasses cutting-edge AI rack infrastructure and builds upon Broadcom’s existing involvement in producing Google’s proprietary 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 a separate, expanded partnership with Anthropic. Under this arrangement, the AI company will gain access to approximately 3.5 gigawatts of computational resources powered by Google’s TPU technology, with deployment scheduled to begin in 2027.
Neither agreement included publicly disclosed financial details in the regulatory filing.
These announcements align with recent statements from Broadcom chief executive Hock Tan during the company’s previous earnings presentation. Tan indicated that Broadcom was currently supplying Anthropic with approximately 1 gigawatt of Google TPU-based computing power throughout 2026. He projected this demand would escalate beyond 3 gigawatts by the following year.
Anthropic’s explosive growth trajectory supports these projections. The AI firm confirmed its revenue run rate has surpassed $30 billion on an annualized basis, marking a dramatic leap from approximately $9 billion recorded at year-end 2025. Additionally, the company now serves over 1,000 enterprise customers, each contributing upwards of $1 million annually—representing a 100% increase from just eight weeks prior.
Wall Street Projects Substantial Revenue Gains for Broadcom
Research analysts at Mizuho, headed by Vijay Rakesh, have quantified the potential financial impact of these partnerships on Broadcom’s revenue stream. Their projections suggest Broadcom could realize $21 billion in artificial intelligence-related revenue specifically from Anthropic in 2026, with that figure potentially reaching $42 billion by 2027. It’s important to note these are analyst forecasts rather than confirmed contractual amounts.
Anthropic characterized the new computing agreement as part of its comprehensive commitment to deploy $50 billion toward American computing infrastructure expansion. The company operates its Claude AI model across diverse hardware platforms, including AWS Trainium processors, Google TPUs, and Nvidia GPUs. Amazon continues to serve as Anthropic’s principal cloud infrastructure provider and model training partner.
The Claude application experienced a notable spike in consumer adoption earlier this year, temporarily reaching the number one position among free applications on the U.S. Apple App Store in February, coinciding with widespread media coverage of tensions between Anthropic and the U.S. Department of Defense.
Broadcom Expands Custom Silicon Partnerships Beyond Google
Broadcom’s custom chip development initiatives extend beyond its Google-Anthropic partnerships. The semiconductor company is simultaneously engaged in custom silicon development efforts with OpenAI.
OpenAI has separately committed to deploying six gigawatts of AMD GPU capacity, with initial one-gigawatt deployment anticipated in the latter half of this year. Both OpenAI and Anthropic maintain substantial dependencies on Nvidia GPU infrastructure accessed through leading cloud service providers.
Broadcom’s stock price increased approximately 3% in after-hours trading immediately following Monday’s partnership announcements.
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