Nvidia May Invest Up to $10 Billion In Anthropic’s IPO

Nvidia has discussed investing in Anthropic’s upcoming initial public offering that would raise as much as $100 billion at a valuation of around $2 trillion, Reuters reported Friday. Nvidia could invest as much as $10 billion in Anthropic at the IPO price, according to the report. Anthropic last raised capital at a $965 billion valuation in May.

The five-year-old AI developer is gearing up to go public in the coming weeks. The new capital would help it pay for computing costs, including the more than $500 billion in agreements to rent servers or lease data center capacity over the next decade or so, The Information previously reported.

Anthropic has become a major user of Nvidia’s AI server chips, though it also uses a substantial number of Google’s and Amazon’s AI server chips. Anthropic also has agreed to buy Advanced Micro Devices server racks and has planned to produce its own chips the way OpenAI has.

Nvidia said late last year that it would invest $10 billion in Anthropic. Nvidia has also been a big backer of Anthropic’s main rival OpenAI, agreeing to invest $30 billion in the ChatGPT maker in a funding round earlier this year and providing around $100 billion in credit support for an Ohio data center that would be filled with Nvidia AI servers and leased by OpenAI.

Nvidia and Anthropic did not immediately respond to a request for comment. The plans are not finalized and could change, per Reuters.