Anthropic lands $35 bn deal amid AI computing race

Anthropic, an artificial intelligence (AI) developer, has secured a $35 billion agreement for access to cloud computing power from a U.S.-based startup called Lambda, as reported by AFP. The six-year deal, signed in San Francisco, adds to a series of such agreements that Anthropic has inked amidst intense competition for advanced computing resources.

Lambda, based in San Jose, California, will gain access to a data center being constructed by Hut 8, a company involved in bitcoin mining and data center creation, including one located in Texas, where Anthropic's computing power will be utilized, according to media reports. Nvidia, which has invested in both Anthropic and Lambda, will lease the data center from Hut 8 and subsequently charge Lambda an undisclosed amount for its access.

In addition, Anthropic has recently signed a comparable six-year-long deal worth $45 billion with Nscale, a London-based cloud provider, which will provide the company with capacity at a facility in West Virginia, as confirmed by AFP. Throughout this year, Anthropic has signed deals worth at least $135 billion, demonstrating the company's strategic drive in the rapidly expanding AI industry.

Anthropic is currently engaged in a fierce race with OpenAI to attract more customers and boost revenue, both companies gearing up for initial public offerings. The competition for chips and advanced computing power has surged in recent years as leading AI model developers vie for customers and capacity. This demand is also putting pressure on global supply chains, including those for chips across various sectors, such as consumer electronics.

Apple, for instance, has already increased prices for certain devices like Macs and iPads due to soaring memory and chip costs; the company is anticipated to raise prices for its newest generation of iPhones, which will be unveiled during an event in September.