AMD announced a strategic partnership with Anthropic on Wednesday to deploy up to 2 gigawatts of AMD computing capacity, with the company also committing to a strategic equity investment of up to $5 billion in Anthropic.

As the news hit the wires Wednesday morning, volatile algorithmic trading sent AMD shares as high as $550 before the stock pulled back.

Rumors of the agreement surfaced Friday, when Jefferies pointed to a potential Anthropic deal ahead of AMD’s Advancing AI 2026 event. The firm said analysts expect AMD to raise its estimate for the AI chip market above $200 billion, surpassing the figure Nvidia (NVDA) provided in May.

Analysts are also watching for more details about AMD’s next-generation MI500 GPUs, its scale-up roadmap and potential customer announcements.

Advancing AI 2026 begins Wednesday and runs for two days, with CEO Dr. Lisa Su scheduled to deliver a keynote address Thursday.