As per the latest report, AI firm Anthropic strikes a huge deal for Google Cloud.

Anthropic has committed to spend $200 billion with Google Cloud over five years as part of a recent agreement, The Information reported on Tuesday, citing a person with knowledge of ‌the matter.

According to the report, the commitment suggests the AI startup accounts for more than 40% of the revenue backlog. Google disclosed to investors last week

The backlog reflects contractual commitments from cloud customers.

Google parent Alphabet shares were up about 2% in extended trading on Tuesday following the report.

Anthropic signed a deal in April with Google and the tech firm's chip partner Broadcom for multiple gigawatts of tensor processing unit capacity, which it expects to come online starting in 2027.

Alphabet is also investing up to $40 billion in Anthropic, deepening its partnership with the artificial intelligence startup, which is also its rival in the global AI race.

Contracts involving Anthropic and OpenAI now account for more than half of the $2 trillion in backlogs at major cloud providers such as Amazon Web Services, Microsoft Azure, and Google Cloud ‌Platform, the U.S. digital news outlet reported.

Strong demand for its Claude family of AI models has driven Anthropic to sign a series of major agreements to acquire more computing capacity.

Last month, Anthropic struck a multi-year deal with cloud infrastructure firm CoreWeave and is also set to secure nearly 1 gigawatt of capacity via Amazon's chips by year-end.

Anthropic has said it trains and runs Claude on a range of AI hardware, including Amazon Web Services' Trainium, Google TPUs and Nvidia GPUs.

Meanwhile, Alphabet is on the cusp of overtaking Nvidia as the world's most valuable company, driven by a record stock rally fueled by its artificial intelligence efforts and booming cloud business.

and the S&P 500 and Nasdaq notching record-high closes, climbing eight-tenths of a percent and one percent, respectively.