Broadcom shares jump as chipmaker inks deals with Google, Anthropic

Broadcom Inc. said it has struck a long-term agreement with Google LLC to develop and supply future generations of custom Tensor Processing Units (TPUs) and to provide networking and related components for Google’s next-generation AI racks, with arrangements extending through 2031. The company also disclosed an expanded collaboration enabling Anthropic PBC to access multiple gigawatts of next-generation TPU-based compute capacity beginning in 2027.

According to company disclosures and media reports, the Google agreement includes a long-term development and supply commitment for custom TPUs and a supply assurance component for rack-level networking hardware. Separately, Anthropic’s deal — structured via Broadcom and Google — will permit Anthropic to secure roughly 3.5 gigawatts of next‑generation TPU capacity starting in 2027 as part of a broader multi‑gigawatt expansion. Financial terms were not disclosed in the filings.

Markets reacted promptly to the announcements: several outlets reported Broadcom shares trading higher in extended and pre-open sessions following the disclosures. The moves reflect investor optimism that long-term supply agreements with hyperscalers and AI cloud customers can provide durable revenue streams for chip designers and infrastructure suppliers. Reported intraday and after‑hours gains suggest the market is repricing Broadcom’s exposure to rapidly growing AI infrastructure demand.

Strategically, the deals mark an important step in the industry’s effort to diversify AI hardware beyond GPU-centric architectures. Google’s TPUs are being positioned as a competitive alternative to GPU-based accelerators, and Broadcom’s role as a designer and supplier of custom TPUs and rack components strengthens its place in the AI value chain. For Anthropic, the added compute access supports its capacity expansion plans to scale large language model training and inference workloads.

Analysts note upside potential but emphasize execution risk: contract volume, timing and pricing will determine the ultimate revenue contribution to Broadcom. Market watchers expect investors to monitor subsequent SEC filings, management commentary and any concrete delivery schedules from the companies involved. If deployments and revenue recognition proceed as signaled, Broadcom could see meaningful tailwinds from sustained AI infrastructure spending over the coming years.