Anthropic is building its own chips. Here's who gets paid.

Dear Fellow Investor,

On Wednesday, Business Insider broke the story that Claude maker Anthropic, widely considered the most powerful AI company in the world, will build its own chips.

Now, for Anthropic, this isn't about competing with Nvidia or any other chipmaker.

Reuters reported the move is a response to a shortage of the chips they need.

Here we have one of the best-funded companies in the world, valued at $1.2 trillion in the private market…

And they can't get the chips they need.

It's not about affording them, I can tell you that.

Anthropic is preparing to spend hundreds of millions of dollars and, in my view, years of engineering time building its own.

That's not ambition. That's desperation.

March. June. Wednesday.

Now, this news broke just a few days ago.

But if this story doesn't feel quite fresh, here's why:

This is the third time we've seen this exact scenario play out in five months.

On March 11th, Meta announced four new generations of in-house AI chips — a two-year roadmap.

And here's the shocking part - the industry takes one to two years to launch a new chip - Meta announced they can now do it in six months or less.

On June 24th, OpenAI unveiled its first custom chip, a processor called Jalapeño, built with Broadcom. Designed in nine months.

And even these events were not “news” - Google's been building its own AI chips since 2015. Amazon since 2018.

What is new is the speed.

Every serious AI company in America is now designing its own silicon, each doing it faster than the last.

Here's the question nobody is asking

You have all these companies building chips - but what does that chip plug into?

An AI chip doesn't run by itself.

It sits in a server. Something has to feed it, schedule its work, move its data around, tell it what to do next.

That something is a processor.

And there is exactly one company whose processor designs are inside nearly every machine in this business.

Here's the evidence:

Anthropic said on Wednesday it will keep using hardware from Amazon, Google, Nvidia and AMD.

Three of these four already run on this one company's architecture.

Amazon, Google, Nvidia.

And this company gets paid by every one of them.

It's not a flashy AI chipmaker everyone's writing about.

It quietly sits next to each chip making it work.

Now, to be clear - I am not promising Anthropic will use this company's technology.

Google, Amazon, Elon Musk, Nvidia, Apple, probably every AI chipmaker you've ever heard of does.

I told my team that's where I'd put my money, but Anthropic has made no official announcement regarding any architecture partners at this time.

You may also see Samsung's name attached to this story in the days ahead. Samsung would manufacture the chip. That tells you nothing about whose blueprint the processor beside it runs on - which is the part that gets paid either way.

And that gap could be an opportunity.

I'm not going to tell you no one's noticed the potential here - readers are up over 100% from my original recommendation.

But this company is still flying under the mainstream radar, and in my view, still has a ton of room to run.

If an Anthropic announcement comes sooner than later, that could be the thing that unlocks the rest of that upside, all at once.

Whether they do, or don't, owning the backbone of nearly every AI chip in existence is not a bad place to be.

Anthropic wasn't the first and it won't be the last to announce a custom chip that almost certainly needs this company's blueprint and will pay whatever it takes.

I've put together a full breakdown on the company - what it does, who its partners are, how it gets paid and why.

Current price looks good to me.

Markets open tomorrow morning. My recommendation? Get ahead of Wall Street. Don't wait for Anthropic to name it. Be ready at the open:

The company behind every AI chip.

“The Buck Stops Here,”