
AI company moves from renting computing power to purchasing hardware directly
AI-generated summary
Anthropic has so far avoided purchasing physical infrastructure and has always rented computing power. It uses $1.25 billion monthly computing power from xAI by May 2029. The uncertainty of electricity supply and long waiting times in the network led the company to directly purchase equipment.
Anthropic is spending $3.4 billion to buy turbines. The company has so far avoided purchasing physical infrastructure and has always rented computing power. This time, it became so difficult to find electricity that it resorted to purchasing natural gas turbines directly.
According to the Financial Times, Anthropic is purchasing generators produced by Caterpillar. These generators were actually ordered by equipment supplier OnePWR. The total capacity goes up to 1.7 gigawatts. Gigawatt means one billion watt power unit. Therefore, the Anthropic turbine purchase puts this capacity directly into the company's hands.
Anthropic turbine purchase and rental history
Anthropic's habit was different. First, the company is leveraging computing power by paying SpaceX subsidiary xAI $1.25 billion a month through May 2029, according to its S-1 document from May. The document also states: "We expect to enter into similar service agreements." So more rental deals are also on the agenda.
But as computing demand increased, electricity supply became uncertain. The waiting list for natural gas turbines extends to the early 2030s. Waiting in line to connect to the network can take at least that long. Therefore, the purchase seems to be a last resort.
OnePWR's funding problem
OnePWR ordered the turbines several years ago but was unable to find the financing to complete the purchase. Anthropic was also planning to buy the turbines from OnePWR. He eventually signed directly with manufacturer Caterpillar.
On the other hand, it is unclear why OnePWR could not obtain financing despite customer interest like Anthropic. It is estimated that Anthropic does not want to lose capacity to its competitors.
Technology giants are also in natural gas
AI companies have been rapidly expanding their supply of natural gas equipment and supplies in recent years. For example, Google, Amazon, Microsoft and Meta announced that they are planning large natural gas power plants to install on-site instead of feeding their data centers from the grid. This demand has given new life to fracking, the hydraulic fracturing method that extracts natural gas from rock layers. Thus, the Anthropic turbine order becomes part of the general trend in the industry.
If the planned investments are completed, data centers in the USA could consume more natural gas than Germany and Japan combined by 2035. Moreover, this dependence brings the risk of price fluctuation. One analyst predicts that prices in some markets could more than triple by the end of the decade. If so, Anthropic may regret its turbine investment.
It is stated that Anthropic is planning to go public this year. However, there is no announced date yet for when the turbines will come into operation. Therefore, the schedule of the Anthropic turbine project remains uncertain for now.
AI outlook — possibilities, not facts
Anthropic's turbine investment may end in regret due to increase in natural gas price
Possible · Within years

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