We propose a superconducting circuit to implement a two-photon quantum Rabi model in a solid-state device, where a qubit and a resonator are coupled by a two-photon interaction. We analyze the input-output relations for this circuit in the strong coupling regime and find that fundamental quantum optical phenomena are qualitatively modified. For instance, two-photon interactions are shown to yield single-or two-photon blockade when a pumping field is either applied to the cavity mode or to the qubit, respectively. In addition, we derive an effective Hamiltonian for perturbative ultrastrong two-photon couplings in the dispersive regime, where twophoton interactions introduce a qubit-state-dependent Kerr term. Finally, we analyze the spectral collapse of the multi-qubit two-photon quantum Rabi model and find a scaling of the critical coupling with the number of qubits. Using realistic parameters with the circuit proposed, three qubits are sufficient to reach the collapse point.