Earlier this month, artificial intelligence firm Anthropic inked a significant computing power procurement deal with Elon Musk's xAI. According to the agreement, Anthropic will lease the entire 300-megawatt computing capacity of the Colossus 1 data center, situated close to Memphis, Tennessee, in the United States. This substantial infrastructure acquisition comes at a considerable cost: from the present until May 2029, Anthropic is obligated to pay xAI $1.25 billion each month. However, discounted rates will apply for the initial two months, which coincide with xAI's capacity ramp-up phase. Based on these terms, the deal is projected to yield total revenue exceeding $40 billion for xAI.
