Broadcom announces long-term chip supply agreements with Google and Anthropic By Investing.com

Broadcom Inc. (NASDAQ:AVGO) announced Monday that it has entered into a long-term agreement with Google LLC to develop and supply custom Tensor Processing Units (TPUs) for future generations of Google's TPUs. The agreement also includes a supply assurance arrangement for Broadcom to provide networking and other components for use in Google's next-generation artificial intelligence racks through up to 2031.

In a separate development, Broadcom, Google, and Anthropic PBC have expanded their current strategic collaboration. Beginning in 2027, Anthropic will access approximately 3.5 gigawatts of next-generation TPU-based AI compute capacity through Broadcom, as part of Anthropic's commitment to multiple gigawatts of AI capacity. The use of this expanded AI compute capacity by Anthropic is dependent on its continued commercial success, according to the filing. The parties are also in discussions with certain operational and financial partners in connection with this deployment.

These announcements were disclosed in a press release statement based on Broadcom's filing with the Securities and Exchange Commission.

In other recent news, Broadcom Inc. has announced a significant transition in its executive team. Amie Thuener will take over as Chief Financial Officer, succeeding Kirsten M. Spears, who is set to retire in June 2026 after 12 years with the company. Thuener, previously with Alphabet, will officially begin her role on June 12, 2026. In another development, Broadcom and Carahsoft Technology Corp. secured a five-year, $970 million contract with the Defense Information Systems Agency to provide cloud software solutions to various Department of War agencies. This agreement aims to consolidate software contracts and offer uniform pricing for private cloud infrastructure and security solutions.

Meanwhile, Erste Group has downgraded Broadcom's stock rating from buy to hold, citing concerns about the company's software segment growth prospects. Despite this, Broadcom projects second-quarter sales to reach approximately $22.0 billion, marking a 47% increase from the previous year. The company also anticipates AI semiconductor sales to hit $10.7 billion for the quarter. Additionally, Seaport's Chief Equity Strategist, Jonathan Golub, suggested that Broadcom, alongside other semiconductor companies, presents upside opportunities as software stocks are expected to rebound.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.