Google is in preliminary talks to expand its investment in Anthropic, the artificial intelligence startup behind the Claude AI models, according to a report by Business Insider on Wednesday that cited people familiar with the discussions.

The potential deal, which remains in early stages, could value Anthropic at over $350 billion, underscoring the rapid rise in investor enthusiasm for advanced AI developers and the escalating competition among tech giants to dominate the generative AI space.

If completed, the new funding would mark a significant increase from Anthropic’s previous valuations and strengthen Google’s partnership with one of its key AI collaborators. The two companies have previously worked together on cloud infrastructure and large-scale model training through Google Cloud.

Reuters said it could not independently verify the Business Insider report, and neither Google nor Anthropic has issued an official statement on the matter.

The reported talks come amid an ongoing surge of investment in the AI sector, with major players such as Microsoft, Amazon, and Nvidia racing to secure strategic stakes in leading AI startups. Anthropic, founded by former OpenAI executives Dario and Daniela Amodei, has emerged as one of the most prominent challengers in the fast-evolving field of generative AI.