Under the terms of the agreement, first reported by the Wall Street Journal<\/a>, Anthropic will purchase up to 2 gigawatts (\u201cGW\u201d) of AMD\u2019s new Instinct MI450 Series chips, which will be deployed using AMD\u2019s brand-new Helios rack-scale system.<\/p>\n In return, AMD will invest up to $5 billion in Anthropic, with Anthropic receiving payouts as it deploys AMD\u2019s chips next year. The first GW will deploy in the first half of 2027.<\/p>\n Let\u2019s break down what this deal means not only for AMD and Anthropic, but also Nvidia as its AI dominance slowly erodes.<\/a><\/p>\n AMD Scores a Big Strategic Win for Its Newest Chips<\/p>\n AMD\u2019s deal with Anthropic looks like a major win for the Santa Clara, California-based chip designer on multiple levels. The most obvious benefit is the commitment of up to 2 GW of its newest Instinct MI450 Series chips via the company\u2019s new Helios rack-scale systems.<\/p>\n Also, according to AMD\u2019s press release announcing the deal, AMD and Anthropic \u201cwill collaborate to use Claude to optimize workloads for AMD Instinct [graphics processing units (\u201cGPUs\u201d)] and accelerate AMD ROCm development, and AMD will broadly adopt Claude across its engineering and product development teams.\u201d<\/p>\n This is big for a few reasons. First, with Claude<\/a> at its disposal, AMD can use the AI model to specifically optimize both training and inference workloads for AMD\u2019s Instinct GPUs.<\/p>\n Second, Claude can help speed up the development of AMD\u2019s Radeon Open Compute (\u201cROCm\u201d) software, an open-source program made for GPU computing that allows developers to program and run AI workloads on AMD\u2019s Instinct accelerators and Radeon graphics cards.<\/p>\n Why is this important?<\/p>\n Because up until now, Nvidia\u2019s Compute Unified Device Architecture (\u201cCUDA\u201d) software ecosystem has thoroughly dominated the AI and high-performance computing space by powering the training and inference of most generative AI large language models (\u201cLLMs\u201d). CUDA drives much of the world\u2019s scientific computing and serves as the foundation for cloud-based accelerated computing<\/a> and AI infrastructure for the biggest cloud providers in the world<\/a>.<\/p>\n Developers have been building within CUDA since 2007. So, once they\u2019re locked into CUDA, it\u2019s tough to switch platforms. That has been Nvidia\u2019s primary defensive moat \u2013 that, and the fact that roughly 81% of AI chips in the world\u2019s biggest data centers in 2025 were Nvidia chips that run on CUDA, which serves as the primary foundation for nearly all large-scale AI infrastructure<\/a>.<\/p>\n That said, independent-research project Silicon Analysts forecasts Nvidia\u2019s AI accelerator market share to dip to 75% by the end of 2026.<\/p>\n One reason for that drop is the emergence \u2013 and expected growth \u2013 of AMD\u2019s ROCm software platform. It\u2019s already gained significant traction, with Microsoft (MSFT)<\/a> having integrated the ROCm platform into its Azure data centers. OpenAI<\/a> and Oracle (ORCL)<\/a> Cloud have since followed suit, deploying large AMD clusters backed by ROCm software in their data centers.<\/p>\n And, in a huge deal (reportedly worth up to $60 billion) announced in February, Meta Platforms (META)<\/a> and AMD agreed to a multiyear, multigeneration partnership to supply 6 GW of AMD processors for Meta\u2019s AI data centers.<\/p>\n AMD\u2019s deal with Anthropic will further tip the scales in its favor. TechInsights<\/a> predicts that AMD data-center chip market share, driven by wider adoption of the ROCm platform, will hit 13% by 2030. Daniel Newman, analyst and CEO of Futurum, takes it a step further:<\/p>\n I think there\u2019s a serious case in which AMD does great and can get to 20% and 25%. And by the way, this is hundreds of billions of dollars of revenue.<\/p>\n If you\u2019re thinking 13% to 25% market share doesn\u2019t sound like all that much, consider that AMD currently holds a 4.5% share of the data-center GPU market versus Nvidia\u2019s 95%, according to Newman\u2019s Futurum. So, a jump from 4.5% to that range would be a massive shift.<\/p>\n Finally, AMD stands to benefit from the Anthropic deal in a way that most companies benefit from AI tools \u2013 it will have Claude available to its own teams<\/a> to improve workflows.<\/p>\n Perhaps the biggest victory for AMD in this partnership is further validation. With the Anthropic collaboration, AMD proves its Instinct chips, ROCm software platform, and Helios rack-scale systems can deliver everything Nvidia can to the largest data-center operators in the world. It also shows a growing desire among some tech companies to diversify and move away (slowly) from Nvidia.<\/p>\n That\u2019s huge for AMD.<\/p>\n Anthropic Gains Much-Needed AI-Compute Capacity<\/p>\n This agreement came at the perfect time for Anthropic. The demand to use Claude \u2013 especially its Claude Code enterprise AI coding assistant tool \u2013 has grown so rapidly that Anthropic, in April, publicly acknowledged Claude\u2019s performance issues and wound up pulling back on customer usage to avoid outages\u2026 which inevitably occurred anyway.<\/p>\n Shortly after that announcement, Anthropic signed a deal with Elon Musk\u2019s SpaceX (SPCX)<\/a>, which gave Anthropic the use of all the compute capacity at Musk\u2019s Colossus 1 data center<\/a> in Memphis, Tennessee. While Anthropic gained critical capacity for its infrastructure, it comes at a steep price\u2026 $1.25 billion per month to SpaceX through May 2029.<\/p>\n Along with the SpaceX deal, Anthropic agreed to major capacity deals with Amazon (AMZN)<\/a>, Alphabet (GOOGL)<\/a>, and Broadcom (AVGO)<\/a> in the spring. But it still wasn\u2019t enough. Anthropic co-founder Tom Brown said on July 22, \u201cAccess to compute is central to keeping Claude at the frontier and meeting demand from our customers.\u201d<\/p>\n Hence the AMD deal, which not only provides needed compute capacity, but also gives the company a \u201cdiversified range of hardware [that] lets us map the right workloads to the right hardware,\u201d according to Brown.<\/p>\n And, of course, there\u2019s the money. Anthropic could receive an investment of up to $5 billion from AMD as it deploys the 2 GW of AMD\u2019s latest chips, starting next year.<\/p>\n As big a win as this is for both AMD and Anthropic, it\u2019s almost as big a loss for Nvidia.<\/p>\n AMD\u2019s Deal With Anthropic Is a Major Blow to Nvidia\u2019s Dominance<\/p>\n Some analysts and industry experts may brush this deal off, considering Nvidia\u2019s historical market-share dominance<\/a>. It\u2019s an understandable point of view. However, this latest agreement for AMD should not be minimized.<\/p>\n We already looked at how AMD is slowly but surely cutting into Nvidia\u2019s market share. That\u2019s indisputable. Skeptics may still point to market-share charts and argue that Nvidia still holds a huge lead over AMD and other chipmakers.<\/p>\n But that\u2019s not the point. If we\u2019re being realistic, AMD will probably never catch Nvidia. There\u2019s simply too wide a gap that has grown exponentially for years. But AMD doesn\u2019t have to erase the gap. It needs to erode it, and it\u2019s succeeding there so far.<\/p>\n The company, which only a few years ago held less than 1% of the AI data-center accelerator market share, now owns between 5% and 7%. That represents massive growth.<\/p>\n As a reminder, Futurum\u2019s Daniel Newman suggested that number could soon reach 20% to 25%. And that equates to billions of dollars more in sales for AMD\u2026 and potentially less for Nvidia. That\u2019s enough to make it a strong competitor, even without coming anywhere near overtaking Nvidia in AI-chip market share.<\/p>\n It\u2019s also important to acknowledge the role that custom silicon designers are playing in Nvidia\u2019s market-share erosion. Based on data from Bloomberg Intelligence, IDC, and Silicon Analysts, Broadcom\u2019s custom application-specific integrated circuits (\u201cASICs\u201d), Google\u2019s tensor processing units (\u201cTPUs\u201d), and Amazon Web Services\u2019 Trainium and Inferentia chips \u2013 along with AMD\u2019s continued growth \u2013 are projected to whittle Nvidia\u2019s share down to 75% by the end of this year.<\/p>\n Again, that\u2019s billions of dollars potentially shifting away from Nvidia and into the bottom lines of its competitors.<\/p>\n AMD vs. Nvidia: Who Wins and Loses in This Anthropic Deal?<\/p>\n None of this is to suggest you should dump your Nvidia shares. The company is still dominant, and its stock has gained roughly 27% over the past year as of July 22, even as its AI competition has intensified.<\/p>\n But look at AMD\u2019s stock trajectory over the same period\u2026 257% growth.<\/p>\n What\u2019s important to keep in mind is that AI-chip demand<\/a> far outweighs its supply. So, even as AMD and other chipmakers eat into Nvidia\u2019s slice of the pie, Nvidia will be just fine. There\u2019s simply too much demand for the products it and its competitors make to lose money. So, Nvidia\u2019s revenue is expected to continue growing.<\/p>\n But remember, every percentage point that AMD or other competitors take from Nvidia means it\u2019s making less money than it would if it maintained or grew its market-share lead.<\/p>\n During its first-quarter fiscal 2027 earnings call, Nvidia reported a record quarterly revenue of $81.6 billion, an 85% year-over-year increase. The company\u2019s AI-specific data-center revenue increased 92% year over year, reaching a record $75.2 billion. Amazingly, Nvidia\u2019s data-center revenue represented 92% of its total revenue.<\/p>\n AMD\u2019s most recent earnings look far different from Nvidia\u2019s, but they still reflect a highly successful business. Remember, AMD is simply operating at a different scale than Nvidia.<\/p>\n Revenue increased 38% year over year to $10.3 billion, which beat Wall Street expectations. AMD\u2019s non-GAAP (generally accepted accounting principles) earnings per share (\u201cEPS\u201d) also surpassed expectations at $1.37, up from $0.96 in the first quarter of 2025. Non-GAAP net income was $2.3 billion, a significant year-over-year jump from $1.6 billion. AMD\u2019s gross margins were strong as well, at 53% (GAAP) and 55% (non-GAAP).<\/p>\n Specific to its data-center business, AMD\u2019s revenue soared to a company record of $5.8 billion, soaring 57% year over year.<\/p>\n And AMD\u2019s second-quarter guidance is encouraging \u2013 roughly $11.2 billion in total revenue, which beats analyst projections of $10.5 billion.<\/p>\n Is AMD or Nvidia Stock the Better Buy Right Now?<\/p>\n There are no guarantees in the stock market, but assuming the demand for AI continues to surge, you can\u2019t really go wrong either way. AMD\u2019s gains have been much more dramatic than Nvidia\u2019s, which has shown slower but steady growth in the past year.<\/p>\n Chaikin Analytics, the investment-research platform founded in 2009 by legendary 60-year Wall Street veteran Marc Chaikin, rates AMD \u201cbullish\u201d in its Chaikin Power Gauge, a 20-factor stock-rating system that scans more than 5,000 stocks and 2,300 exchange-traded funds (\u201cETFs\u201d).<\/p>\n Nvidia\u2019s Power Gauge rating is a slight step down.<\/p>\n AMD\u2019s deal with Anthropic is about as win-win as an AI agreement can get. AMD gets up to 2 GW of its advanced Instinct MI455X chips (part of the MI450 Series) and its new Helios rack-scale system into Anthropic\u2019s data centers, and Anthropic receives up to $5 billion in investments from AMD.<\/p>\n As AMD CEO Lisa Su stated, \u201cTogether, we will accelerate AI adoption at scale and establish Helios as a major platform for the next generation of AI infrastructure.\u201d<\/p>\n Nvidia will continue to make its billions, but Nvidia\u2019s execs may just lose a little bit more sleep over this partnership as its market share continues to erode gradually.<\/p>\n Regards,<\/p>\n David Engle<\/p>\n Editor\u2019s Note: God mode. It\u2019s a controversial idea. Irreverent, even. But, according to 60-year market legend, Marc Chaikin, there\u2019s no better way to brace yourself for what\u2019s coming next for AI.\u00a0 Forget fake videos. The new AI emerging from Silicon Valley labs is a digital entity that thinks for itself \u2013 without human input. A year ago, that might have sounded like science fiction, but consider this a warning: Marc says we\u2019ll hit that day this summer. And when we do, you need to be ready for AI with its own free will. Because it will change how you work, how we live, and \u2014 of course \u2014 how you invest. That\u2019s why he\u2019s giving away a list of stocks to buy and sell absolutely FREE to help you position your money for a virtually unrecognizable world driven by this new \u201cgodlike\u201d technology. Get Marc\u2019s Frontier AI Hotlist of stocks right here<\/a>\u2026\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"Listen to the audio version of this article (generated by AI). Key Points AMD secured a major AI…\n","protected":false},"author":2,"featured_media":121783,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[24,4518,1986,53,305],"class_list":["post-121782","post","type-post","status-publish","format-standard","has-post-thumbnail","category-anthropic","tag-ai","tag-ai-chips","tag-ai-stocks","tag-anthropic","tag-tech-stocks"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/121782","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=121782"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/121782\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/121783"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=121782"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=121782"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=121782"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Market](\"https:\/\/www.europesays.com\/ai\/wp-content\/uploads\/2026\/07\/072726-SMT_Market-Share-Trend-2022-2026-1024x750.png\")
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