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Anthropic isn’t footing the bill for its data centers alone. Valued at $965 billion, the AI startup is leaning on Google to orchestrate a complex $200 billion financing — with the Texas Hubbard project as the most striking example.
A banking consortium led by Morgan Stanley has set up a $14 billion bridge loan. The funds are being used to build a data center campus in Hubbard, Texas, with a 1.6-gigawatt natural gas power plant. Nexus Data Centers is managing the construction. Meanwhile, Google is guaranteeing Anthropic’s commitments related to leases and power purchase agreements. In return for this guarantee, Google secures about 20% of the real estate and energy project. Not exactly a passive role.
Google Guarantees, Google Gains 20% of Texas Project
The financial setup has a name in the industry: “circular financing.” The principle is simple to explain but harder to defend publicly. Google guarantees the construction of infrastructures that, once operational, will consume Google’s cloud services and chips. The money makes a full circle. Google guarantees Anthropic, Anthropic builds with Google, Anthropic buys from Google.
This raises questions. Is it a classic business partnership or financial support disguised under a more presentable structure? The model has been compared to agreements between Nvidia, OpenAI, and Microsoft — similar setups where chip and cloud providers also become the financiers of their own clients. Some see a self-sustaining bubble. Others see a coherent industrial investment strategy. Probably a bit of both.
No clear answer yet on where the line is drawn.
$200 Billion Over Five Years, 40% of Alphabet’s Orders
The Hubbard project is just one piece of the puzzle. Anthropic plans to spend $200 billion over five years on cloud and chips with Google. It’s massive. This represents more than 40% of Alphabet’s recent orders. To put that in perspective: Alphabet, Google’s parent company, thus sees a huge portion of its orders coming from a single startup in which it has also directly invested.
And Google is investing up to $40 billion in Anthropic’s equity. So Google is both a client, supplier, guarantor, and shareholder. The level of entanglement is frankly unusual, even for a tech sector accustomed to cross-relationships.
Despite a valuation of $965 billion, Anthropic has capital needs that exceed what its cash reserves can absorb alone. Data centers on this scale are expensive, very expensive — and quickly. Hence the need for creative setups with partners capable of bearing the short-term financial risk.
Anthropic has also rejected the tokenization of its shares. The choice is clear: no crypto, no dispersion among hundreds of small investors. The startup prefers to focus on solid partnerships with giants like Google rather than opening its capital through decentralized mechanisms. For a company dealing in AI, it’s a rather conservative stance on finance.
This refusal says something about Anthropic’s internal culture. Maintaining control over the capital structure, avoiding fluctuations related to crypto markets, keeping a direct relationship with a limited number of strategic partners — it’s a deliberate approach, not an oversight.
And Morgan Stanley at the center of the $14 billion bridge loan is not insignificant either. Traditional big banks are now financing AI data centers guaranteed by Big Tech. The classic financial sector has joined the AI infrastructure table, with Google guarantees as collateral. It’s a marked shift from what was seen five years ago in tech financing.
Nexus Data Centers oversees the construction in Hubbard. The 1.6-gigawatt natural gas power plant accompanying the campus gives an idea of the expected energy consumption — a figure that will fuel the debate on AI’s environmental footprint, even if the source doesn’t dwell on it.
The $14 billion bridge loan remains the most concrete figure in the case.
Frequently Asked Questions
What is Google’s exact role in financing Anthropic’s data centers?
Google guarantees Anthropic’s commitments related to leases and power purchase agreements for the Hubbard, Texas project, and in return, acquires about 20% of the real estate and energy project. Google also invests directly up to $40 billion in Anthropic’s equity.
Why did Anthropic reject the tokenization of its shares?
Anthropic prefers focused partnerships with giants like Google rather than dispersing among many small investors through crypto tokenization mechanisms.
What is the total amount Anthropic plans to spend on cloud over five years?
Anthropic plans to spend $200 billion over five years on cloud and chips with Google, which represents more than 40% of Alphabet’s recent orders.
