Google (GOOGL) Backs Anthropic Texas AI Data Center Project Worth $15 Billion

• Alphabet, through Google, is backing Anthropic's planned AI data center campus in Texas, part of a project reported at around $15b.
• The support reportedly includes substantial financial guarantees for the build out of the facility.
• Google is expected to supply AI chips to power Anthropic's workloads at the Texas site.
• The arrangement may also give Alphabet an opportunity to take an equity stake in Anthropic.

Alphabet, ticker NasdaqGS:GOOGL, is tying this large infrastructure commitment to its broader push in AI. The stock last closed at $356.13, with a return of 11.4% over the past week and 13.0% year to date. Over the past year the share price is up 88.8%, and over three years the return is 180.5%.

This new Texas project gives Alphabet deeper integration with a key AI partner and adds context to how the company is using its balance sheet to secure compute access. For investors, it offers fresh detail on how capital is being directed toward AI infrastructure and how Google is positioning itself within the wider AI ecosystem.

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📰 Beyond the headline: 2 risks and 3 things going right for Alphabet that every investor should see.

Quick Assessment

• ✅ Price vs Analyst Target: Alphabet trades at US$356.13, which is about 16.6% below the US$426.95 analyst price target.
• ✅ Simply Wall St Valuation: The stock is described as trading 19.6% below the estimated fair value.
• ❌ Recent Momentum: The 30 day return is down 1.4%, which contrasts with the stronger longer term performance.

There's only one way to know the right time to buy, sell or hold Alphabet. Head to Simply Wall St's company report for the latest analysis of Alphabet's Fair Value.

Key Considerations

• 📊 This Anthropic data center backing ties Alphabet even more tightly to large scale AI compute, which is central to the long term story investors are tracking.
• 📊 Investors may want to monitor capital intensity for AI infrastructure, any updates on the Texas campus timeline, and how usage of Alphabet AI chips translates into revenue and margins.
• ⚠️ Earnings are currently forecast to decline on average by 0.8% per year over the next 3 years, so investors may want to test how this project interacts with those expectations.

Dig Deeper

For the full picture including more risks and rewards, check out the complete Alphabet analysis. Alternatively, you can check out the community page for Alphabet to see how other investors believe this latest news will impact the company's narrative.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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