Microsoft, Nvidia, and Anthropic Join Forces in Major AI Push

In a significant move, Microsoft has teamed up with Nvidia and Anthropic, signaling a shift in its AI strategy. This collaboration is a big deal because it shows Microsoft is diversifying its investments beyond OpenAI. Microsoft is putting $5 billion into Anthropic, while Nvidia is contributing $10 billion. In return, Anthropic will use Microsoft’s Azure cloud services and could need up to one gigawatt more of computing power. This partnership is notable because it’s the first time Nvidia and Anthropic are working together. They plan to enhance Anthropic’s AI models using Nvidia’s latest chips, like the Vera Rubin and Grace Blackwell. Nvidia’s CEO, Jensen Huang, is thrilled about this collaboration, calling it a dream come true and praising Anthropic’s work on its Claude language models. Microsoft already has a huge stake in OpenAI, valued at around $135 billion. Interestingly, Anthropic was founded in 2021 by former OpenAI researchers, including CEO Dario Amodei. Despite this, Microsoft’s CEO, Satya Nadella, emphasizes that the goal is not to pick one winner in AI but to create tools that benefit everyone. Nvidia is set to report its earnings soon, and this new deal might come up during the discussion. Wall Street analysts are bullish on Microsoft, with a Strong Buy consensus rating based on recent recommendations. The average price target for Microsoft stock is $632. 07, suggesting a potential 29. 4% upside. This shows confidence in Microsoft’s strategy and future growth. This deal highlights the competitive and collaborative nature of the AI industry. It’s not just about one company winning but about advancing technology together. The partnership between Microsoft, Nvidia, and Anthropic could set new standards in AI development and cloud computing.