Microsoft, Anthropic, Nvidia unveil billion-dollar strategic AI deal

by · UPI

Nov. 18 (UPI) -- Software giant Microsoft announced Tuesday a new multi-billion dollar "deep technology" strategic AI deal with Nvidia and Anthropic.

Microsoft will invest around $5 billion in Anthropic, an artificial intelligence startup, with Nividia contributing some $10 billion as part of the agreement, according to a blog post.

"As an industry, we really need to move beyond any type of zero sum narrative or winner take all hype," according to Microsoft CEO Satya Nadella.

Anthropic reportedly committed to a $30 billion buy of Microsoft's Azure software and processing capacity up to one gigawatt. In addition, Anthropic is poised to purchased up to another gigawatt of capacity via Nvidia's Grace Blackwell and Vera Rubin operating systems.

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"This is a dream come true for us," Nvidia CEO Jensen Huang stated in a joint video.

"You know, we've admired the work of Anthropic and Dario for a long time, and this is the first time we are going to deeply partner with that Anthropic to accelerate Claude."

The terms of the deal still are being finalized, CNBC reported.

It pushes Anthropic's valuation to the near $350 billion range.

The blog stated that for the first time Nvidia and Anthropic opted to collaborated in order to "support Anthropic's future growth."

Microsoft has already invested billions in OpenAI, a direct rival of Anthropic, as far back as 2019.

Microsoft's Nadella said 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," Nadella said in Tuesday's video with the three tech leaders.

"The opportunity is simply too big to approach any other way," he added.

Meanwhile, Nividia on Wednesday is slated to issue its third-quarter earnings report.