Advanced Micro Devices has entered into a multi-billion dollar partnership with AI startup Anthropic, which includes the deployment of up to 2 gigawatts of MI450 AI accelerators. Simultaneously, chip designer Broadcom announced it expects AI chip revenue to exceed $100 billion by 2027, driven by surging demand for custom silicon.
AMD and Anthropic Forge Multi-Billion Dollar AI Infrastructure Partnership
In a significant expansion of its AI hardware footprint, Advanced Micro Devices (AMD) and Anthropic have finalized an agreement involving both hardware deployment and an investment. The deal, announced this Wednesday, secures a path for Anthropic to utilize up to 2 gigawatts of AMD’s MI450 AI accelerators. Deployment is scheduled to begin in the first phase of the partnership.
Beyond the hardware supply, the agreement stipulates that AMD may invest into the AI startup. This move aligns AMD with other major industry players competing to provide the compute capacity necessary for training and operating large-scale artificial intelligence models.
Broadcom Projects $100 Billion in AI Chip Revenue by 2027
On Wednesday, CEO Hock Tan projected that the company’s artificial intelligence chip revenue would surpass $100 billion in 2027. The company’s financial outlook, which notably exceeds typical one-quarter guidance, reflects high visibility into long-term demand for custom processors.
“Our visibility in 2027 has dramatically improved. Today, in fact, we have line of sight to achieve AI revenue from chips in excess of $100 billion in 2027.”
Hock Tan, CEO of Broadcom
Broadcom’s strategy differs from traditional merchant chipmakers by focusing on custom silicon development, working closely with major technology firms like Google and OpenAI to design internal processors. Analysts have noted the significance of this long-range guidance. Broadcom’s guidance for the April quarter and into 2027 was very encouraging,
said D.A. Davidson analyst Gil Luria. While the company typically only guides one quarter at a time, the visibility into results more than a year out is an indication of significant growth in demand.
Custom Silicon Demand Across the AI Sector
The current market environment is characterized by massive capital expenditure from major cloud and AI providers. Big Tech firms, including Alphabet, Microsoft, Amazon, and Meta, are expected to spend at least $630 billion on AI infrastructure this year, fueling demand for Broadcom’s networking and custom chip solutions. Broadcom reported that its own AI revenue more than doubled to $8.4 billion in the quarter ended February 1.
Broadcom’s roadmap for custom accelerators remains a focal point for investors, particularly regarding Meta’s custom silicon program. Addressing market speculation about a potential slowdown in Meta’s reliance on external suppliers, Tan confirmed that Meta’s custom accelerator MTIA roadmap is alive and well
and added, We’re shipping now.
Comparative Compute Deployments
The scale of these partnerships is increasingly measured in gigawatts of computing capacity.
| Company | Partner/Customer | Deployment Timeline |
|---|---|---|
| Broadcom | Anthropic | 1 gigawatt (2026); 3 gigawatts (2027) |
| Broadcom | OpenAI | First chip shipments in 2027 |
| AMD | OpenAI & Meta | Deals of up to about 6 gigawatts |
These developments underscore a broader shift where AI startups and hyperscalers are securing multi-year hardware commitments to ensure they have the necessary compute power to maintain their competitive positions in the evolving AI market.
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