AMD to Invest $5 Billion in Anthropic, Supply AI Chips in Major Nvidia Challenge, WSJ Reports

Advanced Micro Devices has reportedly reached a deal to invest up to $5 billion in artificial intelligence startup Anthropic and supply it with AI servers worth tens of billions of dollars, according to The Wall Street Journal. The agreement, if confirmed, represents a major strategic move by AMD to challenge Nvidia's leadership in the critical AI hardware market.

Details of the Reported Agreement

The deal encompasses a massive hardware supply contract and a significant equity investment, the newspaper reported on Tuesday. Key details from the report include:

• A commitment for up to 2 gigawatts of AMD’s next-generation Instinct MI450 accelerator chips.
• Deliveries are scheduled to begin in the first half of 2027.
• Anthropic will reportedly use the chips in its own data centers and through leased capacity from cloud providers.

According to Reuters, which cited the WSJ report, AMD did not immediately comment, while Anthropic stated it would release a statement soon. The report could not be immediately verified.

Market Implications

Ad

This partnership would be a landmark win for AMD, validating its strategy to compete directly with Nvidia for top-tier AI customers. Securing a major AI model developer like Anthropic signals growing market confidence in AMD's product roadmap and its ability to deliver performance at scale.

For investors, the deal underscores AMD's potential to capture a significant share of the rapidly expanding AI infrastructure spending. For Anthropic, it secures a vast amount of future computing power, which is essential for training and deploying more advanced AI models, while also diversifying its hardware supply chain.

Context and Scale

The reported hardware component is substantial in scale. Industry executives cited in the report have estimated that building out 1 gigawatt of computing power—enough to power roughly 750,000 homes—can cost around $50 billion.

This development positions AMD as a formidable competitor in the AI accelerator space and highlights the immense capital investments AI firms are making to secure the computational resources needed for future growth.