Anthropic Commits $30 Billion To Expand Azure Capacity – Nvidia, Microsoft To Invest $15 Billion In The AI Startup

Anthropic and Nvidia stated they would collaborate on the design and fine-tuning of AI models to improve performance, efficiency, and cost.

• Anthropic has committed to buying $30 billion in Azure compute capacity, including up to one gigawatt on Nvidia systems.
• Nvidia and Microsoft pledged up to $10 billion and $5 billion in new investment to support Anthropic’s expansion.
• Claude will now be available across all three major cloud platforms through an expanded Microsoft partnership.

Amazon (AMZN)-backed AI startup Anthropic announced on Tuesday that it has committed to buying $30 billion in Azure compute capacity, with the potential to use up to one gigawatt of compute power on Nvidia (NVDA) systems.

Anthropic’s compute commitment will initially be up to one gigawatt of compute capacity with NVIDIA Grace Blackwell and Vera Rubin systems. The two will also be collaborating on design and engineering to optimise Nvidia’s hardware for Claude’s workload.

As part of the partnership, NVIDIA and Microsoft are committing to invest up to $10 billion and up to $5 billion, respectively, in Anthropic. On Stocktwits, retail sentiment around Anthropic trended in ‘extremely bullish’ territory amid ‘extremely high’ levels of chatter. 

Meanwhile, Nvidia’s stock slid more than 3% in midday trade and Microsoft’s stock fell nearly 4%, tracking weakness across megacap tech. Amazon’s stock was down 3.8%.

Anthropic, Microsoft Expand Partnership

Microsoft and Anthropic also expanded their existing partnership to bring Claude to more enterprise customers. Microsoft Foundry users will gain access to multiple versions of Claude. This will make Claude the only frontier AI model available across all three major cloud platforms. Azure customers will also receive expanded model options and deeper Claude-specific capabilities.

More Spending Amid ‘AI Bubble’ Concerns

The deal comes amid investor concerns of an ‘AI bubble’ where spending on AI may be outpacing future growth prospects. “The Big Short” investor Michael Burry, who warned about the U.S. housing crisis, has pointed to accelerating AI spending that may not align with long-term revenue potential.

Even Google (GOOG, GOOGL) CEO Sundar Pichai recently acknowledged “elements of irrationality” in the current investment cycle, warning that a sharp correction could affect even the largest technology companies.

However, not everyone agrees. Veteran strategist Charles Clough, who predicted the late-1990s market downturn, believes that today’s concerns may be misplaced. According to Clough, the present rally is supported by strong earnings, ample liquidity, and well-capitalized companies rather than pure speculation.

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