TLDR
- Microsoft will invest $5 billion and Nvidia will invest $10 billion into Anthropic
- Anthropic commits to purchasing $30 billion in Azure compute capacity from Microsoft
- The deal includes up to one gigawatt of compute capacity using Nvidia’s Vera Rubin and Grace Blackwell systems
- Nvidia and Anthropic will collaborate on optimizing Claude AI models for the first time
- Microsoft’s stake in OpenAI is valued at $135 billion, representing about 27% of the company
Microsoft announced a new partnership with Nvidia and AI startup Anthropic on Tuesday. The deal involves $15 billion in combined investments and a massive compute commitment.
Under the agreement, Microsoft will invest $5 billion into Anthropic. Nvidia will contribute $10 billion to the AI company.
Anthropic has committed to purchasing $30 billion of Azure compute capacity from Microsoft. The startup has also contracted for additional compute capacity up to one gigawatt.
The companies plan to use Nvidia’s Vera Rubin and Grace Blackwell systems. This represents the first deep partnership between Nvidia and Anthropic.
Nvidia CEO Jensen Huang expressed enthusiasm about the collaboration. He said the company has admired Anthropic’s work for a long time.
The partnership will focus on engineering and design optimization. Nvidia and Anthropic will work together to improve Claude’s performance and efficiency.
Strategic Partnerships in AI
Anthropic CEO Dario Amodei explained the company’s plans for the new capacity. The resources will train models, support Microsoft products, and enable joint sales efforts.
Microsoft has been a major backer of OpenAI since 2019. The company holds roughly 27% of OpenAI on an as-converted diluted basis.
OpenAI completed a recapitalization last month. Microsoft’s stake in OpenAI’s for-profit business is valued at $135 billion.
The deal comes weeks after OpenAI announced a $38 billion cloud services purchase from Amazon. That agreement marked OpenAI’s first major push following its recent restructuring.
Computing Power Demands
OpenAI CEO Sam Altman has outlined plans to spend $1.4 trillion. The goal is developing 30 gigawatts of computing resources.
This amount of power could run approximately 25 million U.S. homes. The figure highlights the massive energy requirements of AI development.
Some investors have expressed concerns about AI industry valuations. Business leaders have noted risks from circular deals where partners support each other’s revenue.
Peter Thiel’s hedge fund sold its entire Nvidia stake in the third quarter. SoftBank CEO Masayoshi Son also exited his Nvidia position but invested heavily in OpenAI.
The partnerships reflect intense competition for computing resources in AI development. Companies are racing to build systems that match or exceed human intelligence capabilities.
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