AMD has announced a significant deal with AI company Anthropic, involving an investment of up to $5 billion and a commitment from Anthropic to purchase tens of billions of dollars worth of AMD's AI server chips. This agreement strengthens AMD's position in the competitive AI chip market, challenging industry leader Nvidia.

The deal will provide Anthropic's platform with an additional 2 gigawatts of computing capacity, with the first gigawatt expected to be operational in the first half of next year. This substantial addition of computing power is crucial for Anthropic to advance its AI models, such as Claude, and meet growing customer demand.

Anthropic's AI infrastructure will now include AMD processors alongside chips from other major tech players like Nvidia, Amazon, and Google. The investment from AMD is contingent upon Anthropic meeting specific milestones. The move comes amid a wider semiconductor shortage, which has driven up chip stocks and intensified the race among AI companies to secure computing resources.