Technology company AMD has entered into a significant agreement with AI research firm Anthropic, investing up to $5 billion. As part of the deal, Anthropic will utilize up to 2 gigawatts of AMD's MI450 graphics processing units (GPUs) for training and running its Claude models. This partnership marks another major agreement for AMD in the AI chip supply market, following deals with Meta and OpenAI. Critics have raised concerns about the potential for circular cash flows in these agreements. The deal highlights the growing importance of AI chip suppliers in the industry. This development matters as it underscores the increasing competition in the AI chip market.