Is Nvidia’s $35 Billion Anthropic Pact the Ultimate Circular Financing Play? - 24/7 Wall St.

NVIDIA has entered into a $35 billion cloud computing agreement with AI research firm Anthropic, involving chip supply, cloud tenant backing, and data center leasing. This deal has sparked debate over... Read original →

NVIDIA's $35 billion deal with Anthropic represents a strategic deepening of the AI compute ecosystem, accelerating the convergence of GPU and custom AI chip technologies while pushing data center efficiency. However, the circular financing structure raises concerns over inventory buildup and margin compression, as NVIDIA assumes dual roles as chip supplier, equity backer of Lambda, and tenant anchor for a 700MW Texas facility. Regulatory scrutiny looms, especially amid U.S.-China tech decoupling, where supply chain integrity is paramount. Competitors like AMD and Intel may accelerate chip development to counter NVIDIA's dominance. In the next 12–24 months, if Anthropic fails to monetize its AI services, NVIDIA’s stock could face downward pressure, making this deal a critical test of its long-term growth strategy.