Anthropic to pay xAI $1.25B monthly through 2029 for Colossus data center compute capacity
Summary
Anthropic has agreed to pay Elon Musk's xAI $1.25 billion per month through May 2029 for compute power from the Colossus 1 data center near Memphis, Tennessee. The deal covers 300 megawatts of compute capacity, with a discounted rate for the first two months during xAI's ramp-up period. The total deal could generate over $40 billion in revenue for xAI. Details emerged from SpaceX-related documents.
Source
bskyAnthropic to pay xAI $1.25B monthly through 2029 for Colossus data center compute capacitymexnews.onlineKey quotes
· 3 pulledAnthropic will be paying xAI $1.25 billion per month through May 2029, with a discounted rate for the first two months as xAI completes its ramp-up.
All told, the deal could bring xAI over $40 billion in revenue.
Anthropic surprised the AI world with a deal to buy 300 megawatts' worth of compute — securing the entire output of the Colossus 1 data center near Memphis, Tennessee.
You might also wanna read
Anthropic to pay SpaceX $15 billion annually for AI data center access, IPO filing reveals
SpaceX's IPO filing reveals that Anthropic has agreed to pay $1.25 billion per month (approximately $15 billion annually) through May 2029 f
The Verge·1mo ago
xAI's GPU rental deals with Anthropic and Google signal a datacentre powerhouse strategy ahead of SpaceX IPO
xAI, now part of SpaceX after a February merger, has formed unexpected partnerships with Anthropic and Google by renting them massive GPU ca
martinalderson.com·12d agoxAI's GPU rental deals with Anthropic and Google signal a datacentre powerhouse strategy ahead of SpaceX IPO
xAI, now part of SpaceX after a February merger, has formed unexpected partnerships with Anthropic and Google by renting them massive GPU ca
martinalderson.com·12d ago
Anthropic to Cover Electricity Price Increases from Its AI Data Centers
Anthropic announces it will cover electricity price increases that consumers face from its data centers as the company invests in American A
anthropic.com·4mo ago
Anthropic pledges to cover data center electricity infrastructure costs to protect consumers
Anthropic, an AI company, has announced plans to cover 100% of electricity infrastructure upgrade costs for its data centers to prevent pass
The Verge·4mo ago
Anthropic Partners with Google and Broadcom for Multi-Gigawatt AI Compute Capacity Expansion
Anthropic has signed a new agreement with Google and Broadcom to secure multiple gigawatts of next-generation TPU compute capacity expected
anthropic.com·2mo ago
Anthropic Announces $50 Billion Investment for US AI Data Centers
Anthropic announces a $50 billion investment to build AI data centers in the United States, partnering with Fluidstack to establish faciliti
The Verge·7mo ago