- Anthropic committed to over $20 billion in AI compute services from AMD.
- AMD simultaneously committed up to $5 billion to buy Anthropic stock.
- The circular arrangement is framed as a strategic partnership but faces skepticism as a de facto rebate.
- The deal helps Anthropic bypass compute capacity caps set by hyperscalers and boosts its valuation ahead of an IPO.
According to a Wall Street Journal report, hyperscalers are capping Anthropic‘s AI compute capacity. To work around this, the Claude maker entered an unusual partnership with AMD.
The agreement requires Anthropic to commit over $20 billion for AMD‘s AI compute capacity. In a circular financial move, AMD simultaneously committed up to $5 billion to purchase Anthropic stock.
The chipmaker framed the arrangement as a strategic partnership to lock in a marquee client. A skeptical person might, however, explain the two deals as a de facto rebate via share buybacks.
Details of the arrangement were laid bare in Anthropic‘s IPO prospectus, as reported by Reuters. Meanwhile, AMD‘s quarterly report discloses investment commitments of up to $5 billion, conspicuously without naming Anthropic.
The partnership covers up to two gigawatts of AMD‘s Instinct MI450 chips starting in the first half of 2027. Anthropic co-founder Tom Brown stated, “Access to compute is central to keeping Claude at the frontier and meeting demand from our customers.”
The deal comes as Anthropic lost money at a startling rate in 2025, running an operating loss above $8 billion on just $4.6 billion of revenue. AMD‘s investment will certainly help keep Anthropic‘s valuation optimistic despite these losses.
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