Investing.com -- Alphabet Inc. (NASDAQ: GOOGL) shares climbed mid-day Friday, rising 1.2%, after Bloomberg reported that Google plans to invest up to $40 billion in Anthropic.

Google will invest $10 billion in Anthropic PBC, with another $30 billion potentially to follow, according to the report. The deal strengthens the relationship between the two companies, which are both partners and rivals in artificial intelligence development.

Anthropic said Google is committing to invest $10 billion in cash at a $350 billion valuation, matching the valuation from a funding round in February. The Alphabet-owned company will invest another $30 billion if Anthropic hits performance targets, and support a significant expansion of Anthropic’s computing capacity.

The startup has accelerated its fundraising following the success of Claude Code, an AI agent that speeds the process of writing computer software.