One of the most profitable investments in history! The value of Google's stake in Anthropic has soared to $124 billion.

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Google's parent company Alphabet's bet on AI startup Anthropic is turning into one of the most lucrative investments in its history.

Bloomberg reported on July 24 that, according to a regulatory filing submitted by Alphabet on Thursday, as of June 30 this year, the total value of its investments in unnamed private companies had reached about $124.3 billion. According to a source, this figure is "mainly" driven by one investment—Alphabet's stake in Anthropic.

The filing also shows that Alphabet recorded about $77 billion in unrealized gains from private investments in the second quarter. Together with gains from stakes in other private companies such as SpaceX, these pushed total private investment gains for the quarter close to $100 billion, driving a significant increase in Alphabet's net profit.

Anthropic is currently preparing for a highly anticipated IPO, which could take place as early as this October, according to reports. This timeline means Alphabet's massive gains on paper could be further tested in the near future.

From $3 Billion to Over $100 Billion: A Staged and Elevated Gamble

Google's investment in Anthropic was not made all at once but was gradually increased over several years.

Google first began investing in Anthropic in 2023, starting with $3 billion. Earlier this year, Google agreed to invest up to an additional $40 billion, including an upfront $10 billion, with up to another $30 billion tied to operational and financial milestones to be met by Anthropic before 2030.

Alphabet's Thursday filing provided the latest update: as of June 30, its remaining committed investment in Anthropic had fallen from $30 billion at the end of Q1 to $20 billion, meaning Google made an additional investment of about $10 billion in Anthropic in the last quarter.

Anthropic has become OpenAI's main competitor in advanced AI models, attracting bets from both Google and Amazon, reflecting a race among tech giants to secure stakes in leading AI startups.

The report noted that with both Google and Amazon as major shareholders in Anthropic, this structure is rare within the AI investment landscape and highlights Anthropic's strategic position in the large model track.

As IPO expectations rise, Anthropic's valuation and equity value are drawing market attention. Alphabet's stake has now become one of the most valuable assets on its balance sheet.

The paper gains from this investment have already had a substantial impact on Alphabet's financial performance.

Alphabet recorded approximately $77 billion in unrealized private investment gains in the second quarter, and with further gains from other private holdings such as SpaceX, total private investment gains for the quarter approached $100 billion, directly boosting the company’s net profit.

However, Alphabet stated that the company cannot disclose more beyond what is in the quarterly report. Notably, these gains remain unrealized, and to what extent they are ultimately realized will depend largely on the pricing and market performance of Anthropic’s IPO.

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