Advanced Micro Devices (AMD) will sell Anthropic tens of billions of dollars’ worth of artificial intelligence servers and invest up to $5 billion in the Claude developer.
The deal will strengthen AMD’s position in the AI chip market, which rival Nvidia currently dominates.
The companies announced the agreement on Wednesday. It is the latest so-called circular deal in the AI industry, where chipmakers invest in AI companies that are also among their largest customers.
Nvidia has also been in talks to invest $30 billion in OpenAI, the developer of ChatGPT.
Anthropic to Buy AMD’s Latest AI Chips
Anthropic will purchase up to two gigawatts of AMD’s latest-generation Instinct MI450 chips. The deployments will begin in the first half of 2027, the companies said.
AMD will tie its investment in Anthropic to the completion of certain deployment milestones.
AMD executives have said that one gigawatt of computing capacity can cost tens of billions of dollars. That amount of power is enough to supply around 750,000 homes in the United States.
The purchase will give Anthropic much-needed computing capacity. The startup has become one of the leading companies in Silicon Valley’s artificial intelligence race, supported by strong adoption of enterprise tools such as Claude Code.
Emarketer analyst Jacob Bourne said the agreement was strategically important because each major customer win strengthens AMD’s credibility as the second-largest player behind Nvidia. He added that such deals support AMD’s gradual market-share gains and its wider AI growth strategy.
Anthropic Expands Computing Capacity
“Access to compute is central to keeping Claude at the frontier and meeting demand from our customers,” Anthropic co-founder and head of compute Tom Brown said on Wednesday.
Anthropic has moved aggressively in recent months to address computing-capacity limits affecting its services.
In May, the company agreed to rent the full computing capacity of SpaceX’s Colossus 1 facility in Memphis. The facility contains more than 220,000 Nvidia processors and gave Anthropic 300 megawatts of additional capacity.
Meta Platforms is also in talks to lease computing capacity to Anthropic in a potential agreement worth up to $10 billion over two years, according to a source familiar with the matter.
Under the AMD agreement, Anthropic will use some of the chips in its own data centres. It will also lease additional capacity through cloud providers and newer AI cloud companies, according to The Wall Street Journal, which first reported the news.
AMD was also in talks to provide financial backing for Anthropic’s future data-centre leases, the report said.
AMD Shares Rise After Announcement
AMD shares rose 2.4% following the announcement. The Santa Clara, California-based company’s stock has more than doubled in value so far this year.
In October, AMD announced a separate multi-year agreement with OpenAI. That deal could generate tens of billions of dollars in annual revenue for AMD and gives the ChatGPT developer the option to purchase up to around 10% of the chipmaker.
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