Google Is Getting a Screaming Bargain on Its New Anthropic Investment. Here's Why.

Alphabet (GOOG.OQ) is reportedly preparing up to a $40 billion investment in AI firm Anthropic, starting with a $10 billion tranche at a $350 billion valuation and a commitment to provide 5 gigawatts of TPU compute. The Motley Fool argues the deal could be a bargain — Anthropic’s revenue is said to have grown from $1B (end-2024) to $9B (end-2025) and to about $30B by April 2026, implying the $350B price is under ~12x trailing sales. While the investment plus a recent $32B Wiz acquisition and $185B planned capex would draw down Alphabet’s cash, the cloud-service revenue and guaranteed compute demand could de-risk Alphabet’s massive spending and potentially boost shareholder value. Overall market implication: a materially positive corporate strategic move for Alphabet with near-term cash concerns but longer-term upside if Anthropic’s growth and IPO materialize.