Anthropic has signed a $35 billion cloud computing agreement, with support from NVIDIA

Dynamic Beating AI News Flash, according to The Wall Street Journal, sources revealed that Anthropic has signed a $35 billion cloud computing agreement with Lambda, a cloud service provider that received investment from Nvidia. The related data center is located in Nueces County, Texas, and is being developed by the Bitcoin mining firm and data center developer Hut 8. Nvidia has signed an agreement with Hut 8 to secure computing power capacity and will directly hold the data center lease.

Under the deal, Lambda will install chips purchased from Nvidia inside the data center being developed by Hut 8, and then provide cloud computing services to Anthropic. It is currently unclear how much Lambda will pay Nvidia for the data center usage fees. This arrangement allows Lambda to obtain a significant contract from Anthropic without having to purchase data center space, while also helping Anthropic access Nvidia's computing resources.

Earlier this year, Anthropic faced a shortage of computing power and also signed a $45 billion agreement with another Nvidia-backed cloud service provider, Nscale, to lease Nvidia's computing power at its West Virginia data center. Hut 8 previously disclosed that a high-investment-grade firm has signed a 15-year master lease for its 700-megawatt Texas campus valued at $20 billion, which will be used to deploy Nvidia chips.