AMD has committed up to $5 billion to Anthropic, but the money is conditional and no valuation has been set. Anthropic now plans to publish its IPO prospectus after Labor Day, with a listing possible as soon as late September or early October, a step that would put a market price on the stake AMD is promising to take.
Advanced Micro Devices committed up to $5 billion to invest in Anthropic when it announced the partnership in late July, alongside Anthropic's pledge to deploy up to 2 gigawatts of AMD Instinct MI450 series GPUs, with the first gigawatt set to begin deployment in the first half of 2027. That investment is about to get easier to measure: Anthropic plans to publish its IPO prospectus after the Labor Day holiday on Monday, with a listing possible as soon as late September or early October, according to a report from The Information.
Conditions still undisclosed
AMD's press release described the commitment carefully, saying only that the company has committed to make a strategic equity investment of up to $5 billion in Anthropic in the future. Its early-August quarterly filing added that the commitment was entered after the quarter ended and remains subject to certain contingencies, with the money expected to go out through fiscal 2028. Neither company has disclosed what the contingencies are, and no valuation for the investment has been set.
That structure mirrors Alphabet's arrangement with Anthropic: Alphabet agreed in April to invest up to $40 billion, with $10 billion paid immediately and the remaining $30 billion contingent on performance milestones. For scale, AMD held $1.7 billion of investments in private companies at the end of the second quarter — this single commitment could nearly triple that figure.
What a listing would change
Anthropic's only public filing so far is a confidential draft registration statement submitted in June. Still, reported figures around the offering are large: CNBC has reported Anthropic is valued at close to $1 trillion in private markets, with investors projecting a float near $2 trillion.
Its annualized revenue run rate topped $30 billion in April and passed $65 billion by the end of July. The company has reportedly raised at least $130 billion so far. Its offering is expected to surpass SpaceX's roughly $86 billion June IPO, currently the largest on record.
At those reported valuations, AMD's up-to-$5-billion commitment would buy no more than about half of 1% of the company. A listing, however, would give whatever stake AMD eventually holds a daily price that flows straight into its reported results — AMD ended the second quarter with $425 million of net unrealized gains on marketable equity securities, mostly from holdings that went public during the quarter.
AMD is helping finance a customer
The company has committed money to a customer that agreed to deploy its chips, while its arrangement with OpenAI runs the opposite direction: that deal handed OpenAI a warrant for up to 160 million AMD shares, vesting as deployment and stock-price milestones are hit. AMD's data center segment revenue more than doubled year over year to $6.7 billion in the second quarter, or 58% of record companywide revenue of $11.5 billion, itself up 50% year over year. Management guided third-quarter revenue to about $13 billion, up about 41% — a deceleration, but at a much larger scale.
Shares trade near $474, about 19% below their 52-week high, at roughly 30 times next year's expected earnings. What the company holds from the Anthropic deal today is still a promise, not a stake.
Source: The Motley Fool
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