Earlier this month, Anthropic stunned the AI world by securing a deal for 300 megawatts of computing power. The company has reserved the entire capacity of the Colossus 1 data center located near Memphis, Tennessee. As it turns out, computing resources of this scale do not come cheap. This is reported by Techcrunch.com reports .
According to SpaceX's S-1 filings with the SEC, Anthropic will pay xAI $1.25 billion per month until May 2029. For the first two months, a discounted rate will apply until xAI fully deploys its capacity. In total, this deal is expected to generate over $40 billion in revenue for xAI.
This agreement allows xAI to monetize its unused infrastructure computing power. Under the terms of the contract, both parties can terminate the agreement with 90 days' notice. The company announced plans to sign other similar service agreements in the future.
This move has turned xAI into a hybrid player in the market. Typically, companies build data centers either for themselves or to rent out to others. This new model, dubbed "Neocloud," allows AI companies to operate as cloud providers when they have excess resources, helping to offset infrastructure costs.
Analysts believe that xAI may have overbuilt its computing capacity and is now seeking ways to monetize it before a potential IPO. With the number of users for Grok, xAI's main assistant, declining significantly in recent months, the idle servers are now being sold to its closest competitor.
Read “Zamin” on Telegram!
