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The AMD logo in this illustration, taken June 11, 2026. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
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Summary
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Companies
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MI450 chip deployment to begin in first-half 2027
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Deal expands AMD foothold beyond Nvidia customers
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Investment tied to deployment milestones
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Anthropic ramps compute capacity amid AI demand
July 22 (Reuters) - Advanced Micro Devices (AMD.O), opens new tab will sell Anthropic tens of billions of dollars' worth of AI servers and invest as much as $5 billion in the Claude maker, in a deal that would strengthen its foothold in a market dominated by rival Nvidia (NVDA.O), opens new tab.
The announcement on Wednesday marks the latest so-called circular deal in the AI industry, where chipmakers invest in AI firms that are among their biggest customers. Nvidia has been in talks to invest $30 billion in ChatGPT creator OpenAI.
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Buying AMD chips would secure Anthropic much-needed AI computing capacity. The startup has emerged as one of the leaders in Silicon Valley's artificial intelligence race, thanks to strong adoption of its enterprise tools such as Claude Code.
"It's strategically significant, as each win deepens AMD's credibility as the number-two to Nvidia and supports the slow, steady share gains underpinning its AI growth story," said Emarketer analyst Jacob Bourne.
Anthropic will buy up to two gigawatts of AMD's latest-generation Instinct MI450 chips, starting in the first half of 2027, the companies said. AMD's investment in Anthropic will be tied to achieving certain deployment milestones.
AMD executives have said 1 gigawatt of computing power, enough for roughly 750,000 U.S. homes, can cost double-digit billions of dollars.
Shares of the Santa Clara, California-based company rose 2.4%. The stock has more than doubled in value so far this year.
In October, AMD announced a multi-year deal with OpenAI that would also bring in tens of billions of dollars in annual revenue while giving the ChatGPT creator the option to buy up to roughly 10% of the chipmaker.
ANTHROPIC NEEDS COMPUTING CAPACITY
"Access to compute is central to keeping Claude at the frontier and meeting demand from our customers," Tom Brown, co-founder and compute head at Anthropic, said on Wednesday.
The startup has moved aggressively in recent months to overcome capacity constraints for its services. It agreed in May to rent the full computing power of SpaceX's (SPCX.O), opens new tab Colossus 1 facility in Memphis, which houses more than 220,000 Nvidia processors and gave it 300 megawatts of new capacity.
Meta Platforms (META.O), opens new tab is also in talks to lease computing power to Anthropic in a potential deal worth up to $10 billion over two years, a source familiar with the matter said last week.
Under the latest deal, Anthropic would use some of the AMD chips at its own data centers and lease additional capacity through cloud providers and new AI cloud companies, according to the Wall Street Journal, which first reported the news.
AMD was in talks to provide a financial backstop for Anthropic's future data-center leases, the report said.
Reporting by Rashika Singh and Aditya Soni, additional reporting by Anzar Mehraj in Bengaluru; Editing by Jonathan Ananda and Joyjeet Das
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Thomson Reuters
Rashika reports on brokerages and financial markets, alongside technology and corporate developments for Reuters, with a focus on U.S. and global companies. Her coverage spans analyst actions, earnings-driven stock moves, semiconductors, artificial intelligence, aerospace and defense, and high‑growth technology stocks, often through breaking news and market‑moving “hot stock” coverage. Her reporting primarily appears in the Technology, Business, and Markets sections of the Reuters website and wire service, examining how brokerage research, corporate strategy and earnings influence investor sentiment and global competition. She regularly contributes to Reuters’ spot and breaking‑news coverage, rather than a named column or standalone newsletter.
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