AMD says Anthropic deal includes up to $5 billion investment and chip order

US chipmaker AMD said on Wednesday that it plans to invest up to $5 billion in artificial intelligence start-up Anthropic under a partnership that also includes a large processor order.

AMD said Anthropic is set to buy up to two gigawatts of AMD's latest-generation Instinct MI450 chips. Anthropic will also use AMD's Helios rack-scale systems, which AMD is developing as it tries to compete in the market for high-performance AI chips. AMD said deployment of the first gigawatt is due to begin in 2027.

AMD chief executive Lisa Su said the collaboration brings together Anthropic's work in frontier AI with AMD's high-performance computing. Anthropic chief compute officer Tom Brown said the partnership would help the company secure and optimize capacity for training and serving Claude.

The deal follows a multi-year AMD venture announced in October with OpenAI to develop AI data centers. The report said Nvidia's graphics processing units remain dominant in the AI field, while AMD's agreements with OpenAI and Anthropic help it present itself as a competitor. It also said some investors question whether such orders are artificially increasing chip demand.

Under the October OpenAI agreement, AMD granted OpenAI a warrant for up to 160 million AMD shares, a financial product that can be converted into shares under certain conditions. The report said that could leave OpenAI owning about 10 percent of AMD.

AMD said on Wednesday that its planned strategic equity investment of up to $5 billion in Anthropic would represent less than one percent of Anthropic's estimated $965 billion valuation. AMD shares rose 1.0 percent in morning trading.