Claude starts building its own chips, and Anthropic uses this capability to flex its muscles to IPO investors.

Beating AI News Flash: Anthropic, sprinting toward an IPO, has unveiled another new card to investors: getting Claude to design AI chips. The company's in-house chip team of just 15 people has already put Claude to work on actual engineering design. Engineers believe some tasks take less time than their estimates for the processes of traditional chipmakers such as Nvidia and AMD.

Anthropic announced its in-house chip effort back in August, but now it is putting Claude's chip-design capabilities in front of IPO investors. If Claude can not only help it develop its own chips but also offer design tools to other semiconductor companies, it could enter a market worth tens of billions of dollars. Currently, chip design software giants Synopsys and Cadence are expected to post combined annual revenue of about $16 billion.

That vision has already triggered a market reaction. On November 3, shares of Synopsys and Cadence fell as much as about 4% intraday.

Competitor OpenAI is also making moves, having used its own models to assist in developing the Jalapeño chip and signed a multi-year cooperation agreement with Synopsys to develop AI models specifically for chip design.