Google (NASDAQ:GOOGL) (NASDAQ:GOOG) will invest $10 billion in AI startup Anthropic, with a potential additional $30 billion tied to performance milestones, according to a report published on Friday.

According to a Bloomberg report, Anthropic said Google’s initial $10 billion cash investment values the startup at $350 billion, in line with its February funding round, excluding the latest capital raised. The search engine giant could invest a further $30 billion if certain targets are met, the report added.

Anthropic and Google did not immediately respond to Benzinga’s requests for comment.

Compute Demand Ramps Up

Before this, Google’s investment in Anthropic was more than $3 billion, and it owned a 14% stake in the company, according to a New York Times report.

Strong demand has prompted Anthropic to sign several major deals recently to acquire more computing ​capacity.

The investment comes weeks after Anthropic announced a deal with Google and chipmaker Broadcom