Google plans to invest up to $40 billion in AI firm Anthropic, Bloomberg reported, in a deal that signals intensifying competition for the computing resources needed to power next-generation AI systems.

The Alphabet subsidiary will commit $10 billion immediately, at a $350 billion valuation for Anthropic, with an additional $30 billion contingent on Anthropic meeting certain performance targets, according to Anthropic.

The announcement follows Anthropic's release this month of its latest model, Mythos, to a limited group of partners. Anthropic describes Mythos as its most powerful model to date, with significant cybersecurity applications. Due to concerns about potential misuse, the company restricted broader access while it works with select organizations to evaluate and address risks. Bloomberg reported that the model has already been accessed by unauthorized users. The model is also expected to be expensive to run at scale.

The investment expands an already substantial relationship between the two companies. Earlier this month, Anthropic announced a partnership with Google and chipmaker Broadcom to access multiple gigawatts of tensor processing unit (TPU)-based computing capacity beginning in 2027. A Broadcom securities filing placed that figure at 3.5 gigawatts. The new Google investment adds a fresh 5 gigawatts of capacity through Google Cloud over the next five years, with room to grow further.

Anthropic relies heavily on Google Cloud for chips and infrastructure. TPUs are specialized processors designed for AI workloads and are considered among the leading alternatives to Nvidia's high-demand chips.

The Google deal is one of several infrastructure agreements Anthropic has secured in recent weeks. The company faced widespread complaints about Claude use limits and responded with a series of capacity deals. It struck an agreement with cloud computing provider CoreWeave for data center capacity and secured an additional $5 billion investment from Amazon, part of a broader arrangement under which Anthropic is expected to spend up to $100 billion for around 5 gigawatts of compute capacity over time.

Competitor OpenAI has also moved aggressively to lock in compute resources, including an expanded deal with chipmaker Cerebras, announced this month, that Reuters reported could exceed $20 billion.

Anthropic's valuation stood at $350 billion as recently as February. Bloomberg reported that investors have since sought to back the company at $800 billion or more. The company is also reportedly considering an IPO as soon as October.

Get the latest insurance market updates and discover exclusive program opportunities at ProgramBusiness.com. 

A new research report from HTF Market Intelligence examines the global Small Medium Enterprise (SME) insurance market, identifying key players, growth drivers, and emerging trends shaping the sector through 2033. The study projects the market will grow from $25.8 billion in 2026 to $45 billion by 2033, reflecting a compound annual growth rate of 8.2%.

Major Players

HTF MI identifies 15 major players in the global SME insurance market, including Allianz SE, AIG, Zurich Insurance Group, Chubb Limited, Travelers Companies, AXA XL, Liberty Mutual Insurance, MetLife, Hiscox Ltd., CNA Financial Corporation, The Hartford, Nationwide Mutual Insurance Company, Marsh & McLennan Companies, Aviva plc, and Berkshire Hathaway. Additional companies available for inclusion in the full study include Tokio Marine Holdings, QBE Insurance Group, Assicurazioni Generali S.p.A., RSA Insurance Group, W.R. Berkley Corporation, Munich Re, and Suncorp Group.

Growth Drivers

The report cites several factors driving market expansion. The number of SMEs globally continues to grow, and their awareness of risk management is increasing. SMEs face a range of risks, including cyber threats, natural disasters, and liability claims, which is pushing demand for comprehensive insurance solutions. The expansion of e-commerce and digital services has also generated new insurance needs, prompting insurers to develop tailored products for the sector. Government initiatives supporting SMEs and favorable regulatory environments further contribute to growth. Post-pandemic economic recovery is also encouraging SMEs to invest in protection against business disruptions.

Technology and Product Trends

Insurers are increasingly leveraging digital platforms to streamline policy purchasing and management. Data analytics and artificial intelligence are enabling more accurate risk assessment and personalized pricing. The rise of customizable insurance products enables SMEs to select coverage tailored to their specific risks across industries. The report also notes a growing focus on sustainability, with some insurers developing eco-friendly policies that promote responsible business practices among SME clients. Distribution channels boosting the market include direct sales, brokers, and online platforms.

Regional Landscape

North America currently holds the majority of the market share in the global SME insurance market. Europe has emerged as the next significant market for SME insurance brands, according to the report.

Recent Activity

Two notable transactions have taken place among major players. In February 2024, Aon plc announced its acquisition of a specialty insurance provider focused on SMEs, with the goal of enhancing its product offerings and strengthening its position in the segment. In December 2023, Zurich Insurance Group entered a strategic partnership with a fintech company to develop innovative insurance solutions for SMEs, reflecting the company's effort to advance its digital capabilities and expand its market reach. The SME insurance market is described in the report as highly competitive, with numerous key organizations, including leading diversified financial services firms, actively introducing new products and upgrading existing offerings. Source: HTF Market Intelligence, Global Small Medium Enterprise Insurance Market Study Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.

A federal court in Texas has struck down a key Internal Revenue Service rule affecting micro captive insurance arrangements, marking a notable development for tax policy and regulatory oversight.

On April 15, Senior Judge Lee H. Rosenthal of the U.S. District Court for the Southern District of Texas vacated the IRS classification of 831(b) micro captive insurance plans as “listed transactions.” The decision came in the case of Drake Plastics Ltd. Co. & SRA 831(b) Admin v. Internal Revenue Service. As a result, the court rejected the agency’s broad designation of these arrangements as presumptive tax shelters.

The ruling removes penalties and reputational implications tied to the “listed transaction” label. However, it leaves in place a lower-tier disclosure requirement for these plans.

SRA 831(b) Admin, a plan manager founded in 2008, participated in the case as a co-plaintiff. The company provides administration services for 831(b) Plans, which are used by small- to medium-sized businesses as part of structured risk management strategies.

An 831(b) Plan is a tax-deferral mechanism that allows businesses to set aside funds to self-insure against risks that are either underinsured or excluded from traditional policies. These risks may include supply chain disruptions, litigation exposure, cyber insurance exclusions, warranties, and other low-frequency but high-severity events. The plans were established under the Tax Reform Act of 1986.

Interest in 831(b) Plans has increased since the COVID-19 pandemic. During that period, many insurers adjusted coverage terms, reduced limits, or introduced new exclusions. As a result, some businesses have sought alternative methods to address coverage gaps.

The court’s decision specifically addressed the IRS’s attempt to broadly classify these arrangements without individualized evaluation. By vacating the “listed transaction” designation, the court removed associated compliance burdens, including potential fines of up to $200,000.

Dustin Carlson, president of SRA 831(b) Admin, said the ruling addresses concerns about how these plans have been evaluated. He stated that the decision reinforces the need for fact-based assessments rather than broad categorizations.

According to Carlson, the case reflects broader questions about regulatory authority and enforcement practices. He noted that the court rejected the approach of labeling arrangements as tax shelters before establishing supporting evidence.

Industry observers have indicated that the ruling may influence how the IRS approaches enforcement and rulemaking going forward. The decision comes in the context of the post-Loper Bright Enterprises v. Raimondo framework, which places limits on judicial deference to federal agencies.

Despite the removal of the “listed transaction” designation, 831(b) Plans remain subject to disclosure requirements. These plans continue to be positioned as part of broader risk management strategies, with contributions structured to provide tax-deferred funds to address uninsured losses.

SRA 831(b) Admin reports that it works with more than 1,500 businesses nationwide. The company focuses on compliance, education, and implementation of these plans as tools to address financial exposure related to underinsured and uninsured risks.

The court’s ruling represents a shift in how certain micro captive insurance arrangements are treated under federal tax rules. At the same time, it maintains oversight through existing disclosure requirements while removing a classification that had carried significant regulatory and financial consequences.

Get the latest insurance market updates and discover exclusive program opportunities at ProgramBusiness.com.