Microsoft and Nvidia are set to invest in AI startup Anthropic, valuing the company at 350 billion dollars. Microsoft plans to invest up to $5 billion, while Nvidia is set to invest up to $10 billion, making it one of the largest funding pushes in the sector.

As part of the agreements, Anthropic will purchase $30 billion of Azure compute and secure access to 1 gigawatt of Microsoft’s capacity. They will also buy 1 gigawatt of Nvidia’s Grace Blackwell and Vera Rubin systems, marking a significant partnership between the companies.

Anthropic and Nvidia will collaborate on engineering efforts to optimize the startup’s models for performance and efficiency, utilizing Nvidia’s hardware to meet Anthropic’s needs effectively.

Microsoft continues to expand its AI alliances with investments in companies like Anthropic and OpenAI, holding a 27% stake in OpenAI’s for-profit business, valued at approximately 135 billion dollars.

Founded by former OpenAI researchers, Anthropic is backed by Amazon and known for its Claude family of models. Amazon remains its primary cloud and training partner as they work towards building durable, shared AI capabilities.

MSFT is currently trading at $495.2, down 2.42% on the NasdaqGS, reflecting the latest developments in the tech and AI sectors.

Read more at Nasdaq: Microsoft And Nvidia Deals Push Anthropic Toward A $350 Bln Valuation