The BareStory
Broadcom announced on a Thursday earnings call that AI lab Anthropic was the customer behind a previously disclosed $10 billion order for custom chips. The company also reported securing an additional $11 billion order from Anthropic in its most recent quarter.
The orders are for Google's tensor processing units (TPUs), which Broadcom manufactures. According to Broadcom CEO Hock Tan, the company is delivering entire server racks, known as XPUs, to Anthropic, which is its fourth such customer. Tan also stated that Broadcom had secured a fifth, unnamed customer for its custom chip business that placed a $1 billion order during the fourth quarter.
These deals are part of a broader, multi-billion dollar cloud partnership between Anthropic and Google that was announced in late October. The agreement is expected to give Anthropic access to as many as one million Google TPUs. Google Cloud CEO Thomas Kurian said Anthropic’s expanded use of TPUs reflects the chips' price-performance and efficiency. Anthropic utilizes a multi-cloud strategy that also involves chips from Amazon and Nvidia.
The announcements come as investors view Broadcom as positioned to benefit from growth in AI infrastructure. The company's stock has climbed 75% in 2025, reaching all-time highs. Ahead of the earnings report, analysts expected Broadcom to report fourth-quarter revenue of $17.49 billion, according to market data.
How it may affect me
As a U.S. reader:
• Investment portfolios with Broadcom stock or tech funds may see value increases, as the company's share price has surged following major AI chip orders.
• The vast increase in computing power for AI lab Anthropic could accelerate the development of new AI applications and services available to the public.
• Competition among Google, Amazon, and Nvidia to supply AI infrastructure may influence the future cost and quality of AI-powered services for businesses and consumers.