Advanced Micro Devices disclosed plans on Wednesday to supply Anthropic with tens of billions of dollars in AI computing infrastructure while making an investment of as much as $5 billion in the AI startup. The arrangement represents another instance of what has become known as a circular deal within the artificial intelligence sector, wherein chip manufacturers invest capital in AI companies that simultaneously serve as major purchasers of their products. Nvidia has been pursuing a comparable structure through negotiations to invest $30 billion in OpenAI.
Anthropics agreement to acquire up to two gigawatts of AMD’s latest-generation Instinct MI450 chips would begin in the first half of 2027, with AMD’s investment contingent upon the company reaching specified deployment objectives. Industry analysts noted the strategic importance of the transaction, with one observer characterizing it as deepening AMD’s position as the second-largest player behind Nvidia while supporting gradual market share expansion in the AI sector. AMD’s stock price increased 2.4% on the announcement, with the company’s shares having more than doubled since the beginning of the year.
Anthropic has faced significant constraints on computing resources despite its emergence as one of the leading competitors in Silicon Valley’s artificial intelligence development. The startup moved to address this challenge earlier in the year by securing access to the complete computing capacity of SpaceX’s Colossus 1 facility in Memphis, which operates over 220,000 Nvidia processors and delivered 300 megawatts of additional capacity. Discussions between Meta Platforms and Anthropic regarding a potential lease arrangement worth as much as $10 billion over two years were also underway as the company pursued multiple avenues to expand its infrastructure.
According to reporting on the terms of the arrangement, Anthropic planned to deploy some of the AMD processors at its own data centers while leasing additional capacity through established cloud service providers and emerging AI-focused cloud companies. AMD was additionally engaged in discussions to supply financial support for Anthropic’s subsequent data-center lease obligations, providing additional structural support for the startup’s computing expansion strategy.
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