Advanced Micro Devices NASDAQ:AMD struck a multibillion-dollar deal with Anthropic that includes an investment of up to $5 billion in the AI developer, contingent on certain milestones. Anthropic committed to buying tens of billions of dollars of AMD's latest AI server chips, adding 2 gigawatts of computing capacity, with the first gigawatt due online in the first half of next year. AMD shares are up 1.15% intraday.
The arrangement adds AMD to a supplier list that already includes Nvidia NASDAQ:NVDA, Amazon NASDAQ:AMZN and Google NASDAQ:GOOGL, and strengthens its position against Nvidia in AI accelerators. Tom Brown, Anthropic co-founder and chief compute officer, said access to compute is "central to keeping Claude at the frontier."
The deal lands amid an industry-wide semiconductor shortage that has pushed AI developers to secure capacity years ahead of need and driven chip stocks sharply higher. The stock has gained more than 140% so far this year.