Microsoft, Nvidia, and Anthropic just unveiled one of the most circular AI deals yet. The three companies announced a new partnership packed with eye-popping investment plans that tie cloud spending, chip demand, and startup funding into one tight loop.

Anthropic will buy $30 billion worth of computing capacity from Microsoft’s Azure. The deal includes up to 1 gigawatt of compute powered by Nvidia’s Grace Blackwell chips and its upcoming Vera Rubin systems. To complete the circle, Microsoft is investing up to $5 billion in Anthropic, and Nvidia is chipping in up to $10 billion.

The setup delivers revenue for Microsoft and Nvidia, along with two heavyweight backers for Anthropic. Analysts at Bank of America say these “circular” arrangements help tech leaders expand their total addressable markets, which could amplify long-term returns.

Anthropic has been on a spending spree of its own. Last week, the company announced plans for $50 billion in custom data centers built with Fluidstack. It is targeting $70 billion in revenue by 2028 to support the wave of capex it has committed to.

Even with Azure’s massive role in this deal, Anthropic told Bloomberg that Amazon’s AWS will remain its primary cloud provider.