Google is negotiating a funding round that could value AI startup Anthropic at $350 billion, nearly doubling its previous valuation. The deal might involve strategic investments, additional cloud services, or a convertible note. Google currently holds a 14% stake in Anthropic and recently secured a major deal for AI computing access.

Google is introducing its Private AI Compute service, claiming it offers cloud-based processing with the same security as local device processing. The system uses custom chips and encryption to protect user data, allowing for more powerful AI applications without compromising privacy. It also competes with similar offerings from Apple.

Google hired NCC Group to evaluate its Private AI Compute system, which aims to enhance mobile AI capabilities using cloud resources while maintaining user privacy. The review included two phases: an architecture assessment and a detailed security analysis of various components, involving ten consultants over 100 person-days.

Google has introduced its latest Tensor Processing Unit (TPU) named Ironwood, which is specifically designed for inference tasks, focusing on reducing the costs associated with AI predictions for millions of users. This shift emphasizes the growing importance of inference in AI applications, as opposed to traditional training-focused chips, and aims to enhance performance and efficiency in AI infrastructure. Ironwood boasts significant technical advancements over its predecessor, Trillium, including higher memory capacity and improved data processing capabilities.

OpenAI has entered into a partnership with Google Cloud to meet its increasing computing demands, marking a surprising collaboration between two competitors in the AI space. This deal aims to diversify OpenAI's cloud resources beyond Microsoft, while also providing a boost to Google's cloud business amidst competition from AI startups.

Anthropic has partnered with Google to access up to one million Tensor Processing Units (TPUs) in a deal worth tens of billions of dollars, significantly expanding its AI compute capacity. The company, which has seen rapid revenue growth, leverages a multi-cloud architecture that includes partnerships with both Google and Amazon to optimize performance and cost, while maintaining control over its model and data.