Microsoft and Nvidia Just Signed a Multibillion-Dollar Deal With Anthropic. Here's What It Really Means for Investors.

Microsoft (NASDAQ: MSFT) and Nvidia (NASDAQ: NVDA) just announced a partnership with foundational large language model (LLM) maker Anthropic. As part of the deal, Anthropic has agreed to buy $30 billion of compute capacity from Microsoft's cloud computing unit, Azure, and to commit to an additional 1 gigawatt of compute capacity. One gigawatt of compute capacity is presently valued with a cost around $50 billion, with $35 billion of that the cost of graphics processing units (GPUs). In return, Microsoft will invest up to $10 billion in Anthropic, which now has a $350 billion valuation, while Nvidia will invest $5 billion. Anthropic will also work with Nvidia to optimize its artificial intelligence (AI) model designs for use with Nvidia's future GPU architecture. The $350 billion valuation is a big jump from the $183 billion valuation Anthropic received in its prior funding round in September. Anthropic already had investments from both Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). Amazon is the company's primary cloud computing provider and main training partner, and it will remain in these roles after this deal. Amazon recently opened up Project Rainier, which is an $11 billion AI data center exclusively designed to train Anthropic models and run inference for the company. The data center uses Amazon's custom Trainium 2 AI chips. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool