Anthropic signs 300 MW xAI's Colossus deal paying $1.25B monthly
Anthropic just signed a huge agreement with xAI to use 300 megawatts of computing power from xAI's Colossus 1 data center near Memphis, Tennessee.
The deal, revealed in SpaceX's SEC filing, means Anthropic will pay $1.25 billion every month until May 2029 (with the first two months at a discount while things ramp up).
That's a ton of power (and cash) fueling Anthropic's AI research.
Deal could bring xAI over $40B
This contract could bring in over $40 billion for xAI, but either company can walk away with 90 days' notice.
For xAI, it's a smart way to put its extra computing resources to work and cut down on costs, especially as fewer people are using its Grok AI assistant lately.
SpaceX called this move "We believe our dual monetization strategy provides multiple pathways to generate returns on invested capital," saying it helps make the most of what it has invested and opens up new ways to earn from its tech.