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Anthropic gets $15 billion from Microsoft, Nvidia in deal that brings it closer to rival OpenAI's backers: Report

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Tech giants Microsoft and Nvidia have agreed to invest up to $15 billion in Claude chatbot maker Anthropic. In turn, Anthropic will also purchase $30 billion in computing capacity from Microsoft’s Azure cloud services. 
Tech giant Microsoft and chip major Nvidia have agreed to invest up to $15 billion in AI chatbot Claude maker Anthropic. (Reuters / Dado Ruvic )

Tech giant Microsoft Corp and chips maker Nvidia Corp have agreed to invest $15 billion in artificial intelligence (AI) company Anthropic PBC, in a move that takes the developer closer to its rival OpenAI's biggest backers, Bloomberg reported, citing a source.

The source added that the $15 billion will come as part of Anthropic's next fund-raising round.

The companies on November 18 also announced that the Claude chatbot maker has committed to purchasing $30 billion worth of computing capacity from Microsoft's Azure cloud services. Microsoft shares slid 3.5% and Nvidia fell 2.8% today amid a broader market pullback.

Concerns over AI bubble, circular deals

Notably, the $15 billion deal will bring Anthropic closer to its rival OpenAI's major funders. It also comes as Microsoft and the ChatGPT maker have become publicly and increasingly more competitive with one another, the report pointed.

“We are increasingly going to be customers of each other — we will use Anthropic models, they will use our infrastructure, and we will go to market together. Of course, this all builds on the partnership we have with OpenAI, which remains a critical partner for Microsoft,” Microsoft CEO Satya Nadella said when speaking about Anthropic in a video today.

Overall, the report noted that these new deals come amid investor concerns over so-called “circular deals” where cloud computing companies back chips providers, who invest in AI developers, who then push money back into computing and other tech firms. Some are worried that this circular money movement is a sign of certain market bubble surrounding AI and tech companies, it added.

Anthropic raised $13 billion at $183 billion valuation last

(With inputs from Bloomberg)

by Mint