Microsoft and Nvidia Just Signed a Multibillion-Dollar Deal With Anthropic. Here's What It Really Means for Investors.

Core Insights - Microsoft and Nvidia have partnered with Anthropic, a large language model maker, where Anthropic will purchase $30 billion of compute capacity from Microsoft's Azure and commit to an additional 1 gigawatt of compute capacity, valued at around $50 billion [1] - Microsoft will invest up to $10 billion in Anthropic, which has a current valuation of $350 billion, a significant increase from its previous valuation of $183 billion [2] - Anthropic has existing investments from Amazon and Alphabet, with Amazon providing cloud computing and training support through its $11 billion AI data center [3][4] Microsoft and Nvidia's Investment - Microsoft and Nvidia's investments in Anthropic signify a strategic move to diversify their AI partnerships beyond OpenAI, with Microsoft aiming to enhance its Azure revenue and provide customers with alternative AI models [5][6] - The collaboration with Anthropic allows both Microsoft and Nvidia to strengthen their positions in the AI market, as Anthropic also partners with various chip and cloud computing companies [7]