The potential deal, which has not yet been finalized, would see Alphabet’s Google provide cloud computing services to Anthropic, according to the report.
Alphabet shares rose 2.3% in after-hours trading following the news.
Google declined to comment, while Anthropic did not immediately respond to a request for comment.
Anthropic, backed by major investors Google and Amazon.com, is the developer of the Claude chatbot, which competes with OpenAI’s ChatGPT.
The company aims to more than double, and possibly nearly triple, its annualized revenue run rate next year, driven by rapid adoption of its enterprise products, Reuters reported last week.
Anthropic is on track to reach an internal goal of a $9 billion annual revenue run rate by the end of 2025, based on its current sales pace.