DistantNews
Support us
AMD to invest up to $5 billion in AI firm Anthropic, inks chip deal
🇸🇦 Saudi Arabia /Technology

AMD to invest up to $5 billion in AI firm Anthropic, inks chip deal

From Asharq Al-Awsat · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Chipmaker AMD will invest up to $5 billion in AI startup Anthropic and has secured a major processor order.
  • The partnership aims to position AMD as a competitor to Nvidia in the high-performance AI chip market.
  • Anthropic will purchase AMD's Instinct MI450 chips and deploy its Helios rack-scale solutions, with initial deployment starting in 2027.

US chip manufacturer AMD announced Wednesday it will invest up to $5 billion in artificial intelligence startup Anthropic, simultaneously securing a significant order for processors. This strategic move signals AMD's intent to challenge Nvidia's dominance in the lucrative market for high-performance AI chips.

Under the agreement, Anthropic is set to acquire up to two gigawatts of AMD's latest-generation Instinct MI450 chips. Additionally, the AI firm will deploy AMD's Helios rack-scale solutions, a system designed to compete directly with Nvidia's offerings in the expanding AI infrastructure landscape. The initial deployment of one gigawatt is scheduled to commence in 2027.

This collaboration brings together Anthropic's leadership in frontier AI with the full strength of AMD high-performance computing.

— Lisa SuAMD CEO on the strategic importance of the partnership with Anthropic.

AMD CEO Lisa Su highlighted the collaboration's synergy, stating, "This collaboration brings together Anthropic's leadership in frontier AI with the full strength of AMD high-performance computing." Both companies aim to accelerate AI adoption at scale. Anthropic's chief compute officer, Tom Brown, added, "By partnering with AMD across the stack, we are securing the capacity we need and optimizing it for training and serving Claude."

This partnership follows AMD's October venture with OpenAI, aimed at developing AI data centers. While Nvidia remains the leading player with its GPUs, AMD's strategic investments in emerging AI leaders like OpenAI and Anthropic are crucial for bolstering its credentials in the AI sector. Despite these ventures, some investors remain skeptical about whether these orders artificially inflate chip demand. The OpenAI deal included a warrant for OpenAI to acquire up to 160 million shares of AMD, potentially giving the AI giant nearly 10 percent ownership. AMD's investment in Anthropic represents less than one percent of the startup's estimated $965 billion valuation, and AMD shares saw a 1.0 percent increase in morning trading following the announcement.

By partnering with AMD across the stack, we are securing the capacity we need and optimizing it for training and serving Claude.

— Tom BrownAnthropic chief compute officer on the benefits of the AMD collaboration.
DistantNews Editorial

Originally published by Asharq Al-Awsat in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog