Nvidia, the chip leader, and Microsoft revealed a combined investment of $15 billion in AI startup Anthropic, the developer of the Claude chatbot, as the AI investment craze persists alongside growing concerns of a bubble on Wall Street.

Nvidia dedicated as much as $10 billion, while Microsoft which holds a 27percent stake in Anthropic competitor OpenAI promised up to $5 billion to the creator of Claude AI models.

The arrangement was a significant part of a larger agreement in which Anthropic agreed to buy $30 billion worth of Microsoft's cloud computing resources and utilize the newest iterations of Nvidia's chip technology.

"We are progressively going to be clients of one another," stated Microsoft CEO Satya Nadella in a video online revealing the agreement.

"We will utilize Anthropic models. Our infrastructure will be utilized by them, and we will collaborate to bring to market solutions that enable our customers to understand the benefits of AI," adds Satya Nadella.

The investments signify a major shift in the generative AI industry, where competition has escalated between ChatGPT creator OpenAI and competitors like Anthropic, as well as Google, which unveiled its newest Gemini model on Tuesday.

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Anthropic, based in California and established in 2021 by ex-OpenAI employees, emphasizes safety in the development of AI. The primary product is the Claude chatbot and its range of models.

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As discussions grow among Wall Street analysts regarding an AI bubble, Nvidia, the largest company globally by market capitalization, saw its shares decline by as much as three percent during a widespread sell-off in the technology sectors.

Microsoft's stock fell by almost 3.5percent.

The new funding assessed Anthropic at $350 billion, positioning it among the most valuable companies globally. OpenAI was last appraised at $500 billion.

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Nvidia is an American technology firm established in 1993 that creates and produces graphics processing units (GPUs), systems on chips (SoCs), and associated software.

It is a frontrunner in accelerated computing, a sector it played a key role in developing, offering products and platforms for gaming, professional visualization, data centers, and the automotive sector.