Microsoft and Nvidia Fuel Anthropic’s Surge to a $350B Valuation
Anthropic’s value skyrocketed this week after Microsoft and Nvidia unveiled major strategic investments totaling $15 billion, underscoring the intensifying race to lock in AI compute capacity and diversify beyond any single model provider.
Microsoft is contributing $5 billion, while Nvidia is adding $10 billion, according to sources close to the deal. The infusion nearly doubles Anthropic’s valuation from $183 billion in September to roughly $350 billion, with final terms still being completed.
The move signals Microsoft’s effort to broaden its AI ecosystem, even as it remains deeply tied to OpenAI. Nvidia, meanwhile, gains its first fully integrated, long-term collaboration with Anthropic at a time when demand for advanced training systems is exploding.
Deep Compute Commitments Across Azure and Nvidia Hardware
As part of the agreement, Anthropic will purchase $30 billion worth of Microsoft Azure compute capacity and has locked in additional expansion up to one gigawatt.
The startup will also secure up to one gigawatt of compute capacity powered by Nvidia’s new Grace Blackwell and Vera Rubin architecture—systems designed for next-generation model training at massive scale.
The partners will work jointly to optimize Anthropic’s Claude models for performance and efficiency while tailoring Nvidia’s architectures to Anthropic’s specialized workloads.
A Wider Competitive Field in Frontier AI
Microsoft’s investment comes even as it holds a stake worth $135 billion in OpenAI’s for-profit entity following the company’s recent recapitalization.
Anthropic, founded in 2021 by former OpenAI researchers including Dario Amodei, has grown into a leading frontier-model competitor with its Claude family of LLMs.
Amazon remains Anthropic’s primary cloud and training partner, and has invested billions of its own into the startup—ensuring that Anthropic remains one of the most diversified AI providers across Big Tech.
Microsoft CEO Satya Nadella emphasized the need for multi-partner collaboration instead of winner-takes-all narratives, noting the scale of global AI infrastructure requires shared development across the ecosystem.
Nvidia is set to report earnings Wednesday, giving investors more insight into hyperscaler demand for next-gen AI hardware.
WSA Take
Anthropic’s leap to a $350B valuation highlights an accelerating arms race in AI compute — with hyperscalers now spreading their bets across multiple frontier-model providers. These massive capital commitments reinforce one theme: the AI cycle is nowhere near cooling.
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