Breaking News
Microsoft and Nvidia are deepening their bets on Anthropic in a sweeping new partnership that tightens the race among the world’s biggest AI companies. The deal includes a $30 billion commitment by Anthropic to use Microsoft’s cloud services, alongside fresh multibillion-dollar investments from both Microsoft and Nvidia into the Claude developer’s next funding round.
Under the arrangement announced Tuesday, Nvidia plans to invest up to $10 billion, while Microsoft will put in as much as $5 billion, according to people familiar with the matter. Neither company disclosed valuation details, though Anthropic was recently pegged at around $183 billion, cementing its status as one of the most valuable AI startups in the world.
The partnership reflects the AI industry’s escalating demand for computing power as companies push toward building increasingly capable models. It also positions Microsoft — already the largest backer of OpenAI — closer to one of OpenAI’s most formidable rivals.
Microsoft CEO Satya Nadella said theCompanies are “increasingly going to be customers of each other,” noting that Anthropic will run on Azure infrastructure while Microsoft will integrate Claude models across its ecosystem. Nadella stressed that OpenAI “remains a critical partner,” even as Microsoft diversifies its AI alliances.
The timing is significant. OpenAI recently underwent a major structural overhaul to give its for-profit arm more freedom, and soon after announced a $38 billion cloud-services deal with Amazon, a move widely viewed as a way to reduce its dependence on Microsoft. CEO Sam Altman has also laid out a staggering $1.4 trillion plan to build 30 gigawatts of compute capacity, underscoring the unprecedented scale of investment the AI era is demanding.
Anthropic, founded in 2021 by former OpenAI researchers, has rapidly become a heavyweight in enterprise AI. The company now serves more than 300,000 corporate customers and, according to internal projections reported last month, expects to grow revenue to roughly $26 billion next year — more than double its current run-rate.
As part of the new alliance, Anthropic will work closely with Nvidia on model development and will commit up to 1 gigawatt of AI compute powered by Nvidia’s newest Grace Blackwell and Vera Rubin chips. Industry executives estimate that such infrastructure could cost $20–25 billion to build, highlighting the capital intensity behind the next wave of AI systems.
Microsoft will simultaneously expand access to Anthropic’s Claude models through its Azure AI Foundry. With this move, Claude becomes the only frontier model available on all three major clouds — Microsoft Azure, Amazon Web Services and Google Cloud — giving enterprise customers more flexibility in how they adopt cutting-edge AI.
Together, the deals knit Anthropic, Nvidia and Microsoft into a tighter strategic triangle — one that could reshape the competitive dynamics at the top of the global AI industry.
Under the arrangement announced Tuesday, Nvidia plans to invest up to $10 billion, while Microsoft will put in as much as $5 billion, according to people familiar with the matter. Neither company disclosed valuation details, though Anthropic was recently pegged at around $183 billion, cementing its status as one of the most valuable AI startups in the world.
The partnership reflects the AI industry’s escalating demand for computing power as companies push toward building increasingly capable models. It also positions Microsoft — already the largest backer of OpenAI — closer to one of OpenAI’s most formidable rivals.
Microsoft CEO Satya Nadella said theCompanies are “increasingly going to be customers of each other,” noting that Anthropic will run on Azure infrastructure while Microsoft will integrate Claude models across its ecosystem. Nadella stressed that OpenAI “remains a critical partner,” even as Microsoft diversifies its AI alliances.
The timing is significant. OpenAI recently underwent a major structural overhaul to give its for-profit arm more freedom, and soon after announced a $38 billion cloud-services deal with Amazon, a move widely viewed as a way to reduce its dependence on Microsoft. CEO Sam Altman has also laid out a staggering $1.4 trillion plan to build 30 gigawatts of compute capacity, underscoring the unprecedented scale of investment the AI era is demanding.
Anthropic, founded in 2021 by former OpenAI researchers, has rapidly become a heavyweight in enterprise AI. The company now serves more than 300,000 corporate customers and, according to internal projections reported last month, expects to grow revenue to roughly $26 billion next year — more than double its current run-rate.
As part of the new alliance, Anthropic will work closely with Nvidia on model development and will commit up to 1 gigawatt of AI compute powered by Nvidia’s newest Grace Blackwell and Vera Rubin chips. Industry executives estimate that such infrastructure could cost $20–25 billion to build, highlighting the capital intensity behind the next wave of AI systems.
Microsoft will simultaneously expand access to Anthropic’s Claude models through its Azure AI Foundry. With this move, Claude becomes the only frontier model available on all three major clouds — Microsoft Azure, Amazon Web Services and Google Cloud — giving enterprise customers more flexibility in how they adopt cutting-edge AI.
Together, the deals knit Anthropic, Nvidia and Microsoft into a tighter strategic triangle — one that could reshape the competitive dynamics at the top of the global AI industry.
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.
