Tech firms commit billions to Artificial Intelligence infrastructure

Amazon, OpenAI, Nvidia, Meta, Google and others are signing increasingly large cloud, chip and data center agreements as demand for Artificial Intelligence infrastructure accelerates. The latest wave of deals spans investments, compute purchases, chip supply agreements and data center buildouts.

Spending on Artificial Intelligence infrastructure is accelerating across the technology industry, with major companies committing capital to cloud capacity, chips, data centers and strategic partnerships. Amazon said it will invest up to 25 billion in Anthropic, as the startup commits to spending more than 100 billion over the next 10 years on Amazon’s cloud technologies. Reuters also listed a widening set of multi-billion-dollar agreements involving OpenAI, Meta, Nvidia, Google, Microsoft, SoftBank, Intel, Tesla and others.

OpenAI is at the center of several of the biggest transactions. Amazon is considering an investment of around 10 billion in OpenAI, according to a source who said talks remain very fluid. Walt Disney will invest 1 billion in OpenAI under a three-year licensing agreement that will allow Sora and ChatGPT Images to generate videos featuring licensed Disney characters early next year, excluding talent likeness or voices. OpenAI has also partnered with Broadcom to produce its first in-house Artificial Intelligence processors, while AMD agreed to supply Artificial Intelligence chips to OpenAI in a multi-year deal that gives OpenAI the option to buy up to roughly 10% of the chipmaker. Nvidia is set to invest up to 100 billion in OpenAI and supply data center chips, and Oracle is expected to sell OpenAI 300 billion in computing power for about five years. CoreWeave separately signed a five-year contract worth 11.9 billion with OpenAI in March, and the Stargate joint venture between SoftBank, OpenAI and Oracle was announced with plans to invest up to 500 billion in Artificial Intelligence infrastructure.

Meta has also secured a broad set of supply and cloud arrangements. AMD will sell up to 60 billion worth of Artificial Intelligence chips to Meta and supply six gigawatts’ worth of chips, starting with one gigawatt of MI450 hardware in the second half of this year. Meta is also pursuing the acquisition of Manus in a deal that values the startup at 2 billion to 3 billion, according to a source. CoreWeave signed a 14 billion agreement with Meta and later expanded it into a 21 billion deal. Oracle is in talks with Meta on a multi-year cloud computing deal worth about 20 billion, while Google previously struck a six-year cloud deal with Meta worth more than 10 billion. Meta also took a 49% stake for about 14.3 billion in Scale AI and brought in CEO Alexandr Wang to play a prominent role in its Artificial Intelligence strategy.

Nvidia’s own dealmaking stretches across chips, photonics and data centers. Nvidia has agreed to license chip technology from Groq, and CNBC reported it had agreed to acquire Groq’s assets for 20 billion. Nvidia will invest 2 billion each in Lumentum and Coherent to support research, development and manufacturing in the U.S. Microsoft will invest up to 5 billion and Nvidia up to 10 billion in Anthropic, while Anthropic will pledge 30 billion to run workloads on Microsoft’s cloud and commit up to 1 gigawatt of compute powered by Nvidia hardware. An investor group including BlackRock, Microsoft and Nvidia is buying Aligned Data Centers in a deal worth 40 billion. Nvidia will invest 5 billion in Intel, giving it roughly 4% of the company after new shares are issued, while CoreWeave signed a 6.3 billion initial order with Nvidia.

Other major commitments underline how broad the buildout has become. Google will invest 40 billion in three new data centers in Texas through 2027 and will pay 2.4 billion in license fees tied to technology from Windsurf. Nebius Group will provide Microsoft with GPU infrastructure capacity in a deal worth 17.4 billion over a five-year term. Intel is getting a 2 billion capital injection from SoftBank Group. Tesla signed a 16.5 billion chip sourcing deal with Samsung Electronics for Tesla’s next-generation AI6 chip. Amazon.com pumped 4 billion into Anthropic before adding the new 25 billion commitment, and SoftBank Group will acquire DigitalBridge Group in a deal valued at 4 billion as it expands its Artificial Intelligence-related portfolio.

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