AMD to sell Anthropic tens of billions in AI servers, invest up to $5bn in startup

Advanced Micro Devices (AMD) is set to significantly bolster its presence in the artificial intelligence sector through a major deal with AI startup Anthropic. The agreement includes the sale of tens of billions of dollars worth of AI servers to Anthropic and an investment of up to $5 billion in the company, known for its Claude AI models. This strategic move positions AMD to compete more effectively against its dominant rival, Nvidia, in the rapidly growing AI market.

Under the terms of the deal, Anthropic will acquire AMD's latest-generation Instinct MI450 chips, beginning in the first half of 2027. This acquisition will provide Anthropic with much-needed AI computing capacity as it advances its artificial intelligence race. The investment from AMD is contingent upon Anthropic achieving specific deployment milestones, underscoring a performance-based partnership.

This collaboration represents a notable trend in the AI industry, often referred to as 'circular deals,' where chip manufacturers invest in AI firms that are also major customers. Such arrangements are becoming increasingly common as companies seek to secure supply chains and foster symbiotic growth within the competitive AI landscape. The partnership between AMD and Anthropic is expected to reshape market dynamics and drive further innovation in AI technology.