Broadcom's stock rose 3% in after-hours trading following the chipmaker's announcement of a long-term agreement with Google for the development and supply of Tensor Processing Units (TPUs).

Broadcom will develop and supply custom TPUs for Google's future generations of the processing units.

The company will supply networking components and other parts for Google's next-generation artificial intelligence racks, with the agreement potentially extending through 2031.

Broadcom, Google, and Anthropic have expanded their existing strategic collaboration.

Starting in 2027, Anthropic will gain access to approximately 3.5 gigawatts of computing resources through Broadcom.

Anthropic's utilization of these expanded AI computing resources is dependent on its continued commercial success.