Alphabet plans up to $40 billion investment in Anthropic to deepen AI collaboration

Alphabet intends to invest up to $40 billion in artificial intelligence firm Anthropic, building on an existing relationship in which Anthropic uses Google Cloud infrastructure and offers its Claude AI models through the platform.

Alphabet recently announced AI agents designed to automate processes in areas including telecoms, retail and IT systems, with the capability to diagnose and fix problems before they happen.

BMO Capital boosted its price target for Alphabet to $410, citing the company's strong position throughout the AI ecosystem and growing engagement driven by AI capabilities in its core products.