AMD Reportedly Signs Multi-Billion Dollar Chip Deal and $5 Billion Investment with Anthropic
AMD has reportedly signed a multi-billion dollar agreement with Anthropic to supply its next-generation Instinct MI450 AI chips starting in the first half of 2027. Additionally, AMD will invest up to $5 billion in the AI startup, contingent on reaching specific compute deployment milestones. This massive partnership establishes AMD as a major challenger to Nvidia's dominance in the AI hardware market. For Anthropic, securing a diversified supply of next-generation chips helps mitigate industry-wide hardware shortages and reduces its reliance on a single chipmaker. Under the agreement, Anthropic will procure up to 2 gigawatts (GW) of power capacity equivalent of AMD Instinct MI450 chips. The MI450 is AMD's upcoming AI accelerator designed to compete with Nvidia's next-generation architectures, reportedly featuring HBM4 memory.
## BACKGROUND
AI accelerators are specialized hardware, such as GPUs, designed to accelerate deep learning tasks like training and running large language models. As AI models grow exponentially, leading AI labs require massive amounts of compute power, driving intense competition among chipmakers to supply high-performance hardware.