New Delhi | Updated: November 20, 2025 08:58 AM IST
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Microsoft will invest up to $5 billion into Anthropic, while Nvidia will invest up to $10 billion into the startup, pushing Anthropic’s valuation to $350 billion.
Anthropic on Wednesday announced that it received a fresh round of investments totaling up to $15 billion from Microsoft and Nvidia, increasing the startup’s valuation to $350 billion, up from its $183 billion valuation as of September.
All three companies have forged a partnership involving billions of dollars in investment aimed at accelerating the development of AI models. Under the partnership, Microsoft and Nvidia will invest up to $15 billion in Anthropic, a leading competitor to OpenAI whose models are popular with coders and businesses.
In a video message, Microsoft CEO Satya Nadella said that OpenAI “remains a critical partner,” while adding that the companies will increasingly be customers of each other. “We will use Anthropic models, they will use our infrastructure, and we’ll go to market together,” Nadella said.
Anthropic said it would purchase $30 billion worth of computing capacity from Microsoft Azure, powered by Nvidia AI systems. Nvidia will also work with Anthropic on design and engineering. “This is a dream come true for us,” Nvidia CEO Jensen Huang said in a video on Tuesday. “You know, we’ve admired the work of Anthropic and Dario for a long time, and this is the first time we are going to deeply partner with Anthropic to accelerate Claude.”
Anthropic was founded in 2021 by former OpenAI research executives, including its CEO, Dario Amodei. The Amazon-backed company is best known for developing a family of large language models called Claude. Anthropic’s new model, Claude Sonnet 4.5, is better at following instructions and can autonomously write code for up to 30 hours straight.
Microsoft’s $5 billion investment into Anthropic comes at a time when the tech giant doesn’t want to depend solely on OpenAI, the company behind ChatGPT. OpenAI completed a recapitalisation last month, and Microsoft finally made a partnership with the San Francisco-base startup. Microsoft holds a stake in OpenAI’s for-profit business valued at $135 billion, or roughly 27 per cent of the company on an as-converted, diluted basis.
Amazon Web Services (AWS), a competitor to Microsoft’s Azure, continued to be Anthropic’s primary cloud provider in 2023 and its primary training partner in 2024. Anthropic’s models will now also be available on Azure, Microsoft said.
Microsoft and Nvidia’s investments in Anthropic show the circular nature of AI industry financing. The world’s biggest tech companies, no matter how fierce the competition and despite their rivalries and policy disagreements, are increasingly investing in one another. As circular financing grows, one tech company pays money to another as part of a transaction, and then the second company turns around and purchases the first company’s products or services. Without the initial transaction, the second company might not have been able to make the purchase. The funding mechanism typically takes the form of an investment, a loan, a lease, or another financial arrangement.
The trend of circular investments continues to grow as the potential rewards could reach trillions. However, some analysts warn it could also create an AI bubble; if one major tech company were to crash, fears of a global recession and a collapse of the US economy could follow.
Anuj Bhatia is a seasoned personal technology writer at indianexpress.com with a career spanning over a decade. Active in the domain since 2011, he has established himself as a distinct voice in tech journalism, specializing in long-form narratives that bridge the gap between complex innovation and consumer lifestyle.
Experience & Career: Anuj has been a key contributor to The Indian Express since late 2016. Prior to his current tenure, he served as a Senior Tech Writer at My Mobile magazine and held a role as a reviewer and tech writer at Gizbot. His professional trajectory reflects a rigorous commitment to technology reporting, backed by a postgraduate degree from Banaras Hindu University.
Expertise & Focus Areas: Anuj’s reporting covers the spectrum of personal technology, characterized by a unique blend of modern analysis and historical context. His key focus areas include:
Core Technology: Comprehensive coverage of smartphones, personal computers, apps, and lifestyle tech.
Deep-Dive Narratives: Specializes in composing longer-form feature articles and explainers that explore the intersection of history, technology, and popular culture.
Global & Local Scope: Reports extensively on major international product launches from industry titans like Apple and Google, while simultaneously covering the ecosystem of indie and home-grown tech startups.
Niche Interests: A dedicated focus on vintage technology and retro gaming, offering readers a nostalgic yet analytical perspective on the evolution of tech.
Authoritativeness & Trust
Anuj is a trusted voice in the industry, recognized for his ability to de-jargonize trending topics and provide context to rapid technological advancements. His authority is reinforced by his on-ground presence at major international tech conferences and his nuanced approach to product reviews. By balancing coverage of the world's most valuable tech brands with emerging startups, he offers a holistic and objective view of the global technology landscape.
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