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Anthropic Bet Tens of Billions on AMD. One Month Later, It Signed a $45 Billion Nvidia-Powered Lease

Anthropic apparently chose a winner in the AI-chip war between NVDA and AMD, and it’s both of them.

Reuters reported on August 26, citing a person familiar with the matter after Bloomberg broke the news, that Anthropic will spend $45 billion over six years to rent Nvidia Vera Rubin computing capacity from Nscale’s planned West Virginia campus. The 460-megawatt project is expected to start operating in late 2027. Anthropic declined to comment.

That would be a spectacular win for NVIDIA Corporation (NASDAQ:NVDA), except Anthropic agreed only a month earlier to buy tens of billions of dollars of servers powered by Advanced Micro Devices, Inc. (NASDAQ:AMD).

Source: unsplash

This Is a Multivendor Arms Race

The AMD agreement covers up to two gigawatts of Instinct MI450 capacity beginning in the first half of 2027. AMD also agreed to invest as much as $5 billion in Anthropic as milestones are achieved.

The separate $45 billion Nvidia-powered compute lease is not directly comparable with the AMD server agreement. It is a compute-services lease paid to Nscale, not a direct Nvidia chip order. Even so, it shows Anthropic is unwilling to let a huge AMD commitment prevent it from securing Nvidia’s next-generation platform.

That diversification matters because Anthropic projects $190 billion to $200 billion of revenue in 2028, while its annual revenue run rate topped $65 billion by the end of July, up from $47 billion in May. Capacity must arrive before demand does, making execution timing increasingly critical.

The Bull and Bear Cases

NVIDIA Corporation (NASDAQ:NVDA) bulls get the clearest message: customers can commit to enormous alternatives while still reserving huge amounts of Vera Rubin capacity. Bears can counter that custom chips and AMD are winning credible workloads, while the $45 billion flows through an infrastructure operator, not directly to Nvidia. Vendor diversification can cap pricing power over time.

Advanced Micro Devices, Inc. (NASDAQ:AMD) bulls can finally point to hyperscale volume, not just benchmarks. Two gigawatts could establish MI450 as a real second source and widen its software footprint. The bear case is equally blunt: Anthropic’s separate Nvidia-powered commitment shows AMD has not displaced the incumbent, and the rollout starts in 2027.

Hedge Funds Are Bullish on Both

AMD’s hedge-fund holder count surged from 134 to 165 in Q2, a 23.1% increase. Nvidia’s rose from 277 to 286, up 3.2%. Short interest was only 2.47% of AMD’s float and 1.23% of Nvidia’s as of August 14.

Anthropic is buying insurance against being capacity-constrained, turning the Nvidia-versus-AMD debate into a spending contest both suppliers can win.

READ NEXT: NVIDIA (NVDA): What Foxconn and Super Micro Are Telling Us about the AI Boom and Pony AI Is Scaling Robotaxis Fast—Can the Stock Reach BofA’s $17 Target?

Disclosure: None. Follow Insider Monkey on Google News.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
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Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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