Anthropic will pay xAI $1.25 billion per month for compute
Anthropic has entered a significant deal with xAI, agreeing to pay $1.25 billion per month for compute resources. This contract, which lasts until May 2029, could generate over $40 billion in revenue for xAI. The arrangement allows xAI to monetize excess compute capacity while providing Anthropic with necessary resources for its operations.
- ▪Anthropic will pay xAI $1.25 billion per month for compute through May 2029.
- ▪The deal secures the entire output of the Colossus 1 data center near Memphis, Tennessee.
- ▪xAI's arrangement allows it to monetize unused compute capacity in its infrastructure.
Opening excerpt (first ~120 words) tap to expand
In Brief Posted: 2:29 PM PDT · May 20, 2026 Image Credits:Jakub Porzycki / NurPhoto / Getty Images Tim De Chant Anthropic will pay xAI $1.25 billion per month for compute 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 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. Details of the transaction emerged from SpaceX’s S-1 filing with the SEC.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at TechCrunch.
Discussion
0 commentsMore from TechCrunch
