Anthropic signs deal for 300 megawatts of xAI compute worth $1.25 billion a month
SEC filing shows the agreement could generate more than $40 billion for xAI through May 2029
Quick Look
- Anthropic agreed to buy the full 300-megawatt output of xAI’s Colossus 1 data center near Memphis for $1.25 billion per month through May 2029.
- The SEC filing suggests the contract could bring xAI more than $40 billion in revenue.
AI-generated summary
Anthropic has agreed to buy 300 megawatts of compute, securing the full output of xAI’s Colossus 1 data center near Memphis, Tennessee.
Under the deal, Anthropic will pay xAI $1.25 billion per month through May 2029, with a discounted rate for the first two months while xAI completes its ramp-up. In total, the contract could generate more than $40 billion in revenue for xAI.
Details of the transaction were disclosed in SpaceX’s S-1 filing with the SEC. The company said the agreement “allows us to monetize unused compute capacity in our infrastructure.” Either party may terminate the contract with 90 days’ notice.
The filing added: “We expect to enter into additional similar services contracts.”
The deal gives xAI a hybrid position in the AI market. Most companies either build data centers for their own use or build data centers for other customers, but not both at the same time. This model, sometimes referred to as a “neocloud,” allows AI companies to offset infrastructure costs by selling excess capacity when internal demand does not fully use it.
