Anthropic strikes $9B computing deal with Bitcoin miner Riot
What's the story
Anthropic has signed a massive $9.1 billion deal with Riot Platforms Inc., a Bitcoin mining firm. The deal highlights Anthropic's efforts to secure sufficient computing power to meet its growing customer demand. Riot Platforms recently started selling AI data center capacity and has now committed to providing 191 megawatts of computing power from its Rockdale, Texas campus over the next 20 years. The deal also includes an option to extend the contract twice, each time by five years.
Market reaction
Riot Platforms' shares surge by 25% following the deal
Following the announcement of the deal with Anthropic, Riot Platforms' shares surged by 25% to $24.4 in late trading.
The company has previously reported strong sales in the second quarter, partly due to its data center business.
This new agreement further solidifies Riot Platforms' position in the market as it expands its operations beyond Bitcoin mining into cloud computing services for AI companies like Anthropic.
Growth plans
Anthropic's recent deals with AI cloud computing providers
Anthropic has been signing several deals with AI cloud computing providers in recent months. This is part of its strategy to meet the growing demand for AI tools from customers.
Earlier this year, Anthropic signed a $10 billion deal with Volta Infra Holdings Ltd., a months-old infrastructure start-up, and agreed to purchase nearly $45 billion worth of computing from Elon Musk's xAI in May.