Anthropic will pay xAI $1.25 billion per month for compute
Key takeaways
- Earlier this month, 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.
- Anthropic will be paying x AI $1.25 billion per month through May 2029, with a discounted rate for the first two months as x AI completes its ramp-up.
- Details of the transaction emerged from Space X’s S-1 filing with the SEC.
Why this matters: a development in AI with implications for how people work, create, and decide.
Earlier this month, 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.
Turns out, compute at that scale isn’t cheap. Anthropic will be paying x AI $1.25 billion per month through May 2029, with a discounted rate for the first two months as x AI completes its ramp-up. All told, the deal could bring x AI over $40 billion in revenue.
Details of the transaction emerged from Space X’s S-1 filing with the SEC. The deal, the company said, “allows us to monetize unused compute capacity in our infrastructure.” The terms of the deal allow either side to terminate the contract with 90 days notice.