Microsoft and Nvidia are stepping up their AI game as they announce a major partnership with Anthropic. The AI upstart is committing $30 billion to Microsoftâs Azure cloud, giving itself the resources to scale its models at unprecedented levels. Nvidia is also putting up to $10 billion into the company, while Microsoft itself will invest up to $5 billion. This comes just days after Anthropic revealed plans to invest $50 billion in building new data centers across the United States. Even earlier this month, OpenAI also announced a nearly $38âŻbillion deal with AWS as it diversified its computing power beyond Microsoft. And now the latest move by Anthropic clearly shows that AI is no longer just about software – it is also about massive infrastructure and strategic partnerships.
Anthropic will use this huge cloud commitment to train and deploy its models at a scale few AI firms can match. The collaboration ensures that Anthropic has access to Microsoftâs cutting-edge Azure infrastructure while simultaneously deepening the relationship between one of the worldâs largest software companies. Microsoft has long been a key partner to OpenAI, but this deal indicates a diversification of its AI partnerships. Bringing Anthropic into its ecosystem gives the Satya Nadella-led company broader access to frontier AI models, which it plans to make available through Azure Foundry, enabling enterprise clients to use Claude models for commercial applications.
At the same time, this deal gives Nvidia a prime opportunity to solidify its grip on the AI hardware market. By investing up to $10 billion, the company is deepening its ties with Anthropic and positioning its next-generation GPUs and AI chips as the backbone powering the startupâs advanced models. The race among AI companies to secure large-scale computing power is intensifying. In September 2025, the Sam Altman-led AI frontrunner, along with Oracle and SoftBank, announced plans to build five new data centers across the United States under their joint Stargate project, with a total investment estimated at around $400 billion.
However, the rush to lock in AI infrastructure through massive investments carries several potential risks. One major concern is circular investment patterns, where companies fund each other while also purchasing services from the same partners, potentially inflating valuations without corresponding revenue growth. And recent pullbacks in AI investments by prominent backers have further fueled concerns about the sustainability of this rapid expansion. For example, both SoftBank and Peter Thielâs fund recently sold their entire stakes in Nvidia.
The Tech Portal is published by Blue Box Media Private Limited. Our investors have no influence over our reporting. Read our full Ownership and Funding Disclosure â
