The announcement underscores AI industry’s insatiable appetite for computing power as companies race to build systems that can rival or surpass human intelligence.
Published On 18 Nov 202518 Nov 2025
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Microsoft and Nvidia plan to invest in Anthropic under a new tie-up that includes a $30bn commitment by the Claude maker to use Microsoft’s cloud services, the latest high-profile deal binding together major players in the AI industry.
Nvidia will commit up to $10bn to Anthropic and Microsoft up to $5bn, the companies said on Tuesday, without sharing more details.
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A person familiar with the matter said both the companies have committed to investing in Anthropic’s next funding round.
The announcement underscores the AI industry’s insatiable appetite for computing power as companies race to build systems that can rival or surpass human intelligence. It also ties major OpenAI-backer Microsoft, as well as key AI chip supplier Nvidia, closer to one of the ChatGPT maker’s biggest rivals.
“We’re increasingly going to be customers of each other. We will use Anthropic models, they will use our infrastructure and we’ll go to market together,” Microsoft CEO Satya Nadella said in a video. He added that OpenAI “remains a critical partner”.
The move comes weeks after OpenAI unveiled a sweeping restructuring that moved it further away from its non-profit roots, giving it greater operational and financial freedom.
The startup has since then announced a $38bn deal to buy cloud services from Amazon.com as it reduces reliance on Microsoft. Its CEO, Sam Altman, has said OpenAI is committed to spending $1.4 trillion to develop 30 gigawatts of computing resources – enough to roughly power 25 million US homes.
Still, three years after ChatGPT’s debut, investors are increasingly uneasy that the AI boom has outrun fundamentals. Some business leaders have noted that circular deals – in which one partner props up another’s revenue – add to the bubble risk.
“The main feature of the partnership is to reduce the AI economy’s reliance on OpenAI,” D A Davidson analyst Gil Luria said of Tuesday’s announcement.
“Microsoft has decided not to rely on one frontier model company. Nvidia was also somewhat dependent on OpenAI’s success and is now helping generating broader demand.
AI industry consolidating
Founded in 2021 by former OpenAI staff, Anthropic was recently valued at $183bn and has become a major rival to the ChatGPT maker, driven by the strong adoption of its services by enterprise customers.
The Reuters news agency reported last month that Anthropic was projecting to more than double and potentially nearly triple its annualised revenue run rate to around $26bn next year. It has more than 300,000 business and enterprise customers.
As part of Tuesday’s move, Anthropic will work with Nvidia on chips and models to improve performance and commit up to 1 gigawatt of compute using Nvidia’s Grace Blackwell and Vera Rubin hardware. Industry executives estimate that one gigawatt of AI computing can cost between $20bn and $25bn.
Microsoft will also give Azure AI Foundry customers access to the latest Claude models, making Claude the only frontier model offered across all three major cloud providers.
“These investments reflect how the AI industry is consolidating around a few key players,” eMarketer analyst Jacob Bourne said.
Despite the looming deal, Microsoft shares are down 3.2 percent in midday trading. Nvidia is also trading 1.9 percent lower than at the market open, and Amazon has fallen 4 percent. Tech stocks remain under pressure after a cloud services outage earlier on Tuesday. Neither OpenAI nor Anthropic is publicly traded.
