AMD's $5B Bet on AI Giant Anthropic

Advanced Micro Devices (AMD) has committed to a significant strategic investment of up to $5 billion in the artificial intelligence company Anthropic. This investment is subject to certain contingencies and is expected to be deployed through fiscal year 2028. Anthropic, known for its Claude models, is reportedly preparing to release its initial public offering (IPO) prospectus after the Labor Day holiday, with a potential listing as early as late September or October.

This move by AMD follows Anthropic's agreement to deploy up to 2 gigawatts of AMD Instinct MI450 series GPUs, with initial deployments scheduled for the first half of 2027. The reported valuations for Anthropic are substantial, with projections nearing $1 trillion in private markets and potentially $2 trillion upon public offering. AMD's data center segment revenue has shown robust growth, more than doubling year-over-year to $6.7 billion in the second quarter, now accounting for 58% of the company's total revenue.