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Microsoft, Nvidia Stocks Fall Despite $30B Anthropic Deal

Microsoft and Nvidia Commit $30 Billion to Anthropic AI Development with Google Cloud Support Amid Market Concerns

  • Microsoft and NVIDIA agreed to a combined $30 billion investment deal with Anthropic, focusing on cloud services and AI development.
  • Microsoft will invest up to $5 billion, while Nvidia commits as much as $10 billion to Anthropic.
  • Google Cloud will provide computing power, specifically TPUs, to aid training and deployment of Anthropic‘s Claude AI models.
  • Despite the announcement, shares of Microsoft and Nvidia fell amid broader market concerns about AI-related stock momentum.

Microsoft and Nvidia have reached an agreement to jointly invest $30 billion in Anthropic, the AI company behind the Claude model. This partnership includes a commitment for Anthropic to use Microsoft’s cloud services as part of the deal. Nvidia plans to allocate up to $10 billion, while Microsoft will invest up to $5 billion, according to the companies’ announcement on Tuesday.

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Microsoft CEO Satya Nadella emphasized the need for collaboration across the industry, saying, “As an industry, we really need to move beyond any type of zero-sum narrative or winner-take-all hype. What’s required now is the hard work of building broad, durable capabilities together so that this technology can deliver real, tangible local success for every country, every sector, and every customer”. Nvidia CEO Jensen Huang described the partnership as a significant opportunity, noting their long-standing admiration for Anthropic and founder Dario Amodei, stating, “This is a dream come true for us”.

Separately, Anthropic is also collaborating with Google Cloud to provide the computing power necessary for its AI operations. This deal centers on access to TPU (Tensor Processing Unit) infrastructure, specialized hardware that accelerates machine learning model training and deployment. Google’s role builds on its previous investment and cloud support for Anthropic. According to Dario Amodei, CEO of Anthropic, the partnership with Google Cloud will help scale deployment to a broader audience, saying, “We’re partnering with Google Cloud to support the next phase of Anthropic, where we’re going to deploy our AI systems to a larger set of people. This partnership gives us the cloud infrastructure performance and scale we need.”

While Microsoft has history with a rival AI company, OpenAI, having invested since 2019, this new deal with Anthropic marks a broader commitment to Artificial Intelligence technologies. Despite the announcement, shares of both Microsoft and Nvidia declined. Microsoft stock fell 3% on the day and has dropped 4.7% over the past month amid concerns over the sustainability of the AI-driven market rally.

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