Broadcom currently working on a $21 billion Google AI chips order for Anthropic, CEO reveals

The sheer scale of the Artificial Intelligence (AI) hardware race has been laid bare, as semiconductor giant Broadcom disclosed that AI startup Anthropic has placed a new order worth $11 billion. This brings Anthropic’s total AI Chips order through Broadcom and Google, to a staggering $21 billion.

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The massive commitment is for Google's custom-designed Tensor Processing Units (TPUs), specifically the latest Ironwood AX7 variant, which Broadcom helps Google design and manufacture. The deal marks one of the largest single-compute commitments in AI history, underscoring Anthropic's aggressive push to challenge rivals like OpenAI.

A massive infrastructure commitment

Anthropic, the developer of the Claude large language model and a company focused on AI safety, is securing the specialized hardware required to train and deploy its next-generation models.

The total $21 billion commitment stems from a previously undisclosed $10 billion order Anthropic placed in the third quarter of 2025, which Broadcom CEO Hock Tan identified in a recent earnings call, plus the new $11 billion incremental order.

The chips are Google's powerful TPUs, optimized for machine learning workloads and an alternative to the dominant, but supply-constrained, GPUs made by Nvidia. This massive purchase solidifies the strategic alliance between Anthropic and Google Cloud.

The chips are scheduled for delivery and deployment throughout late 2026 and beyond. Anthropic plans to deploy up to one million TPUs to bring online more than 1 Gigawatt of AI compute capacity, a monumental amount of power dedicated to AI.

The margin question

Despite the immense revenue numbers, Broadcom's stock initially experienced a slight selloff, as investors focused on the challenge of maintaining profitability in the custom chip business.

Lower Margins: CEO Hock Tan noted that while the custom chip business is driving exponential growth, these customized AI accelerators generally carry lower gross margins than the company's other products.

Concentrated Demand: The deal underscores the highly concentrated nature of AI chip demand, which is currently dominated by a handful of large hyperscalers and top-tier AI labs. Broadcom confirmed Anthropic as its fourth custom chip customer and secured a fifth customer with a separate $1 billion order.