Microsoft and Nvidia are both investing in Anthropic, with Anthropic planning to purchase compute power from Microsoft. This partnership diversifies Anthropic’s partnerships like rival OpenAI. The deal benefits both Microsoft and Nvidia, with Microsoft investing up to $10 billion and Nvidia investing $5 billion in Anthropic. Anthropic’s valuation has jumped to $350 billion.

For Microsoft, the deal with Anthropic helps diversify away from OpenAI and adds another leading AI model to its platform. The deal ensures a commitment for Azure, potentially driving revenue growth. For Nvidia, the partnership increases commitments from a customer using GPUs and ASICs, with Nvidia working to optimize designs for future use. The deal is beneficial for both Microsoft and Nvidia investors.

Amazon and Alphabet are already investors in Anthropic, with Amazon’s Project Rainier supporting training for Anthropic models. Anthropic also has a deal with Alphabet for computing capacity and the use of custom TPUs for training AI models. The deal with Microsoft and Nvidia will add incremental revenue growth for both companies in the coming years.

Read more at Nasdaq: Microsoft and Nvidia Just Signed a Multibillion-Dollar Deal With Anthropic. Here’s What It Really Means for Investors.