-- Broadcom (AVGO) shares rose early Tuesday as the chipmaker agreed to produce artificial intelligence chips for Alphabet's (GOOG, GOOGL) Google and expanded its collaboration with Amazon-backed (AMZN) AI startup Anthropic.
Broadcom entered into a long-term deal with Google to develop and supply custom tensor processing units for its future generation of TPUs, the company said in a late Monday regulatory filing. TPUs are Google's application-specific chips used to accelerate machine learning workloads.
The deal also includes a supply assurance agreement for Broadcom to provide networking and other components for Google's next-generation AI racks through up to 2031, according to the filing.
Broadcom's stock increased 3% in the most recent premarket activity.
Last month, Broadcom reported fiscal first-quarter results above Wall Street's estimates, as the chipmaker's artificial intelligence revenue more than doubled year over year.
Separately, Anthropic, Google and Broadcom expanded their partnership under which the AI startup would gain access to roughly 3.5 gigawatts worth of TPU-based AI computing capacity, beginning in 2027.
"This groundbreaking partnership with Google and Broadcom is a continuation of our disciplined approach to scaling infrastructure," Anthropic Chief Financial Officer Krishna Rao said in a Monday blog post. "We are making our most significant compute commitment to date to keep pace with our unprecedented growth."
Anthropic said the expansion of its compute infrastructure will power its Claude AI assistant models and meet rising global demand. The vast majority of the new compute will be sited in the US.
In November, Anthropic disclosed a $50 billion investment in computing infrastructure in the US, with plans to build data centers in Texas and New York. In October, the startup said it will expand its use of Google Cloud technologies, including up to 1 million TPUs, to boost its compute resources for AI research and product development.