Anthropic has reportedly signed a $35 billion cloud-computing agreement with Nvidia Corp (NASDAQ:NVDA)-backed Lambda, with the latter itself holding the lease for the Texas data center that will support the deal.
Anthropic Locks In $35 Billion in AI Computing
The deal will give Anthropic access to computing capacity from Lambda as the AI company races to secure the infrastructure needed to support growing demand for its Claude AI products, the Wall Street Journal reported, citing people familiar with the deal
The Texas facility, located in Nueces County, is being developed by Hut 8 Corp (NASDAQ:HUT), a Bitcoin (CRYPTO: BTC) miner-turned-data-center operator.
Nvidia reportedly reached an agreement with Hut 8 to secure capacity at the facility, while Lambda will use the site to deploy Nvidia chips and provide computing resources to Anthropic.
The financial terms of Lambda’s arrangement with Nvidia for access to the facility remain unclear. Anthropic’s annualized revenue run rate reportedly climbed to $65 billion by the end of July.
Nvidia and Anthropic did not immediately respond to Benzinga’s request for comment.
Nvidia’s Growing Role in AI Infrastructure
The unusual structure highlights Nvidia’s expanding role beyond selling AI chips.
The company has invested in Lambda and is increasingly helping cloud providers obtain the financing and infrastructure needed to deploy Nvidia-powered systems.
Anthropic has been aggressively building its computing capacity following supply constraints earlier this year.
The company earlier this month agreed to spend $45 billion over six years with another Nvidia-backed cloud provider, Nscale, for computing capacity in West Virginia.
Google TPUs Add Another Twist
Hut 8 is also developing separate data centers for Anthropic that are expected to use Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google’s competing Tensor Processing Units.
For the quarter ended June 30, Hut 8 reported revenue of $74.93 million, up 81.4% from $41.30 million a year earlier but below analysts’ estimate of $79.75 million.
Meanwhile, in April, Amazon.com, Inc. (NASDAQ:AMZN) announced that Anthropic plans to spend more than $100 billion on Amazon Web Services technology over the next decade to secure 5 gigawatts of computing capacity.
The agreement includes access to Amazon’s Trainium3 chips, with deployments expected to begin this year.
Price Action: Nvidia shares closed at $220.50 on Monday, up 1.36% on the day. The stock traded at $220.27 in after-hours trading, down 0.10%, according to Benzinga Pro.
According to Benzinga Edge Rankings, Nvidia ranks in the 98th percentile for growth and maintains positive price-trend ratings across the short-, medium- and long-term time frames.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Stockinq on Shutterstock.com
Login to comment