AI Bubble Fear: Microsoft & NVIDIA Pour Billions into Anthropic, Fueling Circular Investment

According to Microsoft, which has revised its partnership with OpenAI, the company announced a planned investment of up to 10 billion USD in Anthropic, while NVIDIA pledged an additional 5 billion USD for Anthropic. This trilateral arrangement also includes Anthropic purchasing 30 billion USD worth of Microsoft Azure cloud capacity and securing up to 1 gigawatt of additional compute resources.

The move, paired with NVIDIA’s funding, has been described as a form of circular investment that highlights the tangled capital flows shaping the AI sector. The article notes that OpenAI recently signed a 38 billion USD cloud contract with AWS, and Amazon added 4 billion USD to Anthropic, with Anthropic adopting AWS’s AI chips. All of these developments come amid concerns that the AI market may be overheating, as the industry’s capital cycles continue to loop between major players.

The piece situates these investments against the backdrop of Microsoft’s updated partnership with OpenAI and the broader drive to secure AI infrastructure and models.