Anthropic will pay xAI $1.25B 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.