AMD bets big on AI with $5B investment in Anthropic
What's the story
Chipmaker Advanced Micro Devices (AMD) has announced a major investment of up to $5 billion in artificial intelligence start-up Anthropic. The deal includes the supply of up to two gigawatts of AMD's next-generation Instinct MI450 chips, with deliveries scheduled for the first half of 2027. This strategic partnership is part of AMD's plan to compete with NVIDIA in the rapidly growing AI hardware market and expand its customer base.
Partnerships
Anthropic's AI infrastructure deals
Along with AMD, Anthropic has also signed AI infrastructure deals with tech giants like Google, Broadcom, and Amazon.
There are also rumors of a potential deal with Meta.
The company plans to use the new chips in its own data centers as well as through leased capacity from cloud providers. This will significantly enhance its computing power for AI projects.
Conditions
AMD's investment contingent on milestones
The $5 billion investment from AMD isn't a one-time deal. It is contingent on Anthropic meeting certain milestones.
There are also talks that AMD might help cover some of the costs associated with Anthropic's data centers.
This multi-year engineering collaboration will see both companies' engineers working together to build advanced AI computing power, a move that highlights the long-term planning required for large-scale AI computing deployments.