Tag: AI computing

  • Anthropic Inks $11.6 Billion Deal with Akamai to Boost AI Computing Infrastructure

    Anthropic Inks $11.6 Billion Deal with Akamai to Boost AI Computing Infrastructure

    Anthropic has signed a massive $11.6 billion, seven-year contract with Akamai Technologies to secure computing power for its artificial intelligence operations. The deal expands upon an earlier $1.8 billion computing agreement between the two companies.

    Under the terms, Akamai will provide Anthropic with access to central processing units (CPUs), as demand for general-purpose chips continues to rise in data centers supporting AI services. The surge in usage of Anthropic’s Claude software, particularly for coding and other tasks, has driven the need for additional computing resources. The AI developer is also purchasing computing capacity from other major tech firms, including Alphabet’s Google and Elon Musk’s SpaceX.

    As part of the agreement, Akamai issued Anthropic a warrant allowing the AI company to purchase Series B shares at $111.33 each. The warrant converts into 7.7 million common shares. A portion of the warrant, representing about 2% of Akamai’s common stock, will vest alongside the computing agreement, which is expected to start in the second half of next year. The remaining portion will become available over the seven-year contract.

    Akamai estimates that capital spending tied to this deal will total about $5.5 billion, more than six times last year’s spending. Most of the investment will go toward servers, chips, and networking equipment, with the bulk expected next year. Akamai CEO Tom Leighton noted that the company’s cloud business is “growing obviously extremely fast” and that revenue from cloud contracts could soon eclipse sales from other segments.

    Revenue from the Anthropic business is expected to reach $150 million to $300 million next year, with an annual run rate of about $1.7 billion by 2028. Leighton described the warrant as a “serious step” that could bring the two companies closer together, marking the first time Akamai has agreed to such a warrant in a cloud deal.

    The deal comes amid investor concerns over circular AI deals, where cloud, hardware, and AI companies buy each other’s products while also making direct investments. Nevertheless, Anthropic’s commitment underscores the intense competition for computing resources in the AI sector.

  • IBM’s Sub-1nm Chip Breakthrough: Nanostack Architecture Ushers in New Era for AI Computing

    IBM’s Sub-1nm Chip Breakthrough: Nanostack Architecture Ushers in New Era for AI Computing

    IBM has unveiled the world’s first sub-1nm chip technology, introducing a new three-dimensional Nanostack architecture designed for next-generation AI computing. The breakthrough promises higher performance, lower power consumption, and could reshape the future of semiconductor innovation across cloud computing, electronics, and advanced AI applications.

    Built on a 0.7nm (7 angstroms) process, the prototype vertically stacks transistors rather than relying solely on shrinking them. IBM said the technology is designed to support increasingly demanding workloads in artificial intelligence, cloud computing, and high-performance computing. As transistors approach atomic dimensions, continuing that trend through conventional scaling has become increasingly difficult because of power, heat, and manufacturing constraints.

    “The next frontier of semiconductor innovation isn’t just about making things smaller, it’s about rethinking how chips are built from the ground up,” IBM said in the announcement. The company noted that the technology marks the beginning of semiconductor development where transistor dimensions are measured in angstroms rather than nanometres. One angstrom is one-tenth of a nanometre, making the new technology a 7-angstrom node. To illustrate the scale, IBM noted that a human red blood cell is about 7,000 nanometres wide, roughly 10,000 times larger than the chip’s 0.7nm transistor node.

    IBM said the new chip packs nearly 100 billion transistors into an area roughly the size of a fingernail, almost twice the transistor density of its 2nm technology introduced in 2021. According to the company, the sub-1nm design can deliver up to 50% higher performance at the same power level, or up to 70% lower power consumption while maintaining the same performance, compared with its 2nm technology.

    “The era of simple scaling is over,” IBM said, adding that “future breakthroughs will come from integrating materials, devices, and architectures in entirely new ways.” IBM claimed that the technology can find applications in artificial intelligence, cloud computing, edge computing, cell phones, and other future electronics, where better performance with lower power consumption becomes increasingly crucial.

    IBM has led the world in developing the chips that power computing systems for decades, from early semiconductors in the 1960s to the world’s first 2nm node chip. The company also recently announced a plan to form Anderon, the world’s first pure-play quantum foundry.

    “IBM’s latest chip breakthrough marks a landmark moment in computing, pushing technology beyond the nanometer era to the scale of atoms. With our new nanostack architecture, we’re not just making smaller transistors; we’re reinventing how chips are built to deliver dramatically more power and energy efficiency,” said Jay Gambetta, Director of IBM Research and IBM Fellow. “This industry-first innovation continues IBM’s legacy of leading in next-generation technologies and sets the foundation for the next era of computing,” he added.

    IBM’s sub-1nm achievement underscores how semiconductor innovations continue to set new benchmarks for technology. With increasing demand for AI applications, semiconductor innovations can drive advancements in computing speed, energy efficiency, and other areas across the medical field, robotics, and beyond.