Advanced Micro Devices said on Wednesday it will invest up to $5 billion in artificial intelligence startup Anthropic and buy up to 2 gigawatts of AMD’s latest generation AI chips starting in the first half of 2027.

AMD is looking to expand its foothold in the fast-growing AI chip market as developers look to diversify beyond Nvidia, while Anthropic is racing to secure computing capacity to meet growing demand for its AI services.

The Wall Street Journal previously reported that Anthropic will use some of the chips at its own data centers and lease additional capacity through cloud providers and neocloud operators.

The report added that AMD is in talks to provide a financial backstop for Anthropic’s future data-center leases.

AMD Chief Executive Lisa Su said the companies’ engineering teams have been working together for some time, and large-scale AI computing deployments require long-term planning.

AMD said the investment would be tied to specific deployment milestones.