Nvidia and Microsoft Invest $15 Billion in Anthropic, Boosting Valuation to $350 Billion

On Tuesday, November 18, 2025, Nvidia and Microsoft announced a joint strategic capital infusion into AI developer Anthropic, totaling up to $15 billion. This significant financial backing immediately elevated Anthropic's post-money valuation to approximately $350 billion, a substantial increase from its $183 billion valuation recorded in September 2025. The funding structure involved Nvidia committing capital up to $10 billion, with Microsoft pledging an investment of up to $5 billion.

This move by two major industry players signals an intent to diversify artificial intelligence partnerships beyond their existing primary relationship with OpenAI. Central to the agreement are extensive infrastructure commitments that underscore the growing importance of compute power in the AI sector. Anthropic formally agreed to procure $30 billion worth of cloud computing capacity from Microsoft Azure, which will be powered by Nvidia's advanced systems. Furthermore, Anthropic committed to contracting for up to one gigawatt of dedicated compute capacity utilizing Nvidia's Grace Blackwell and Vera Rubin hardware architectures.

Securing one gigawatt of AI computing power is estimated by industry executives to cost between $20 billion and $25 billion, illustrating the scale of this infrastructure deal. This deep technical collaboration marks a first between Nvidia and Anthropic, focusing on optimizing Anthropic's models for peak performance on Nvidia's specialized hardware. Microsoft CEO Satya Nadella confirmed that Anthropic's frontier models will operate on the Azure infrastructure, while affirming that OpenAI remains a critical partner for the software company.

This diversification strategy positions Anthropic's Claude models to potentially become the only frontier Large Language Model available across all three major cloud services, alongside Amazon Web Services (AWS), Anthropic's primary cloud provider since 2023. Microsoft is also expanding access to Anthropic's latest Claude models, including Claude Sonnet 4.5, Claude Opus 4.1, and Claude Haiku 4.5, for customers using the Microsoft Azure AI Foundry environment.

Despite the monumental investment news solidifying Anthropic’s standing as the third most valuable private company globally as of November 2025, Nvidia experienced a market correction, with its shares declining by 2.8% on Tuesday amid broader concerns over technology sector valuations. This sentiment was reflected in declines for Amazon and AMD as well. Market attention is now focused on Nvidia's fiscal third-quarter earnings report, scheduled for release after the closing bell today, with analysts projecting consensus earnings per share near $1.25 on revenues anticipated to approach $54.9 billion.

In parallel financial developments, Berkshire Hathaway, led by Warren Buffett, disclosed a new equity position in Alphabet, Google's parent company, valued at $4.93 billion as of September 30, 2025. This investment, involving 17.85 million shares, represents a rare technology sector acquisition for the conglomerate and is considered one of Buffett's final major portfolio decisions before his planned CEO transition to Greg Abel at the end of 2025. Market participants are also awaiting the release of the Federal Open Market Committee Minutes at 2:00 p.m. ET for signals on future interest rate policy.