Anthropic signs US$35bil computing deal with startup backed by Nvidia

Anthropic, the AI developer, has inked a $35 billion deal with Lambda, a startup backed by Nvidia, for access to cloud computing power in a bid to secure advanced computing resources. This deal is part of Anthropic's recent string of deals worth a cumulative $135 billion, as reported by Reuters. Anthropic, based in San Francisco, has entered into a six-year agreement with Lambda, a San Jose-based AI cloud computing services provider.

Lambda will gain access to a data center being developed by another company, Hut 8, which is also involved in bitcoin mining and data center construction. Hut 8, based in San Jose, California, is constructing a data center in Texas, where Anthropic will utilize computing power. Nvidia, which has invested in both Anthropic and Lambda, will lease the data center from Hut 8 and subsequently charge Lambda an undisclosed fee for accessing the data center, according to a report by the Wall Street Journal.

Additionally, Anthropic recently secured a similar six-year deal worth $45 billion with Nscale, a London-based cloud provider, which will provide Anthropic with capacity at a facility in West Virginia. Anthropic's aggressive pursuit of computing deals is part of a competitive race with AI lab OpenAI, both of which are gearing up for initial public offerings.

The demand for advanced computing power has surged in recent years as leading AI model developers vie for customers and capacity. This heightened demand is also straining global chip supply chains, impacting sectors such as consumer electronics. Apple has already raised prices for certain devices, including Macs and iPads, due to chip and memory costs, and is expected to raise prices for its new generation of iPhones, which will be unveiled in September.