Anthropic will pay xAI $1.25 billion per month for compute
Summary
Anthropic has secured the entire output of xAI's Colossus 1 data center in a deal valued at $1.25 billion per month through May 2029. This agreement, disclosed in SpaceX’s S-1 filing, allows xAI to monetize its surplus compute infrastructure. While the contract provides a flexible exit clause with 90 days' notice, the deal could generate over $40 billion in revenue for xAI, signaling a "neocloud" strategy where AI companies rent out excess capacity to offset high infrastructure costs.
(Source:TechCrunch)