The circular AI deals continue. The latest example stars Anthropic, Nvidia, and Microsoft.
On Tuesday, Anthropic announced it plans to spend $30 billion on compute to scale its Claude AI model on Microsoft's Azure cloud platform, "powered by Nvidia." Nvidia is also committing to invest up to $10 billion in Anthropic, as part of the deal, and Microsoft will invest up to $5 billion.
"We're excited to bring our models as a choice to Microsoft Azure, and Anthropic will be the first model that is available on, you know, all three of the biggest clouds," Anthropic CEO Dario Amodei said in a video announcing the deal.
Microsoft, an early investor in OpenAI, recently completed its financial restructuring with the frontier model maker. Microsoft also has a partnership with Elon Musk's xAI, which allows it to host Grok4 on its Azure AI Foundry.
As part of the deal, Anthropic is also committed to contracting additional compute capacity up to one gigawatt. According to a joint announcement, the compute will be made up of Nvidia's Grace Blackwell and Vera Rubin systems.
The announcement comes as concerns about an AI bubble persist on Wall Street amid ballooning valuations and spending commitments. Nvidia is set to report its earnings on Wednesday, which will be closely watched as a barometer for the market's outlook on AI. The world's first $4 trillion market cap company, shares of Nvidia have slid roughly 7% in the last five days.
