Anthropic has entered into a computing power procurement agreement with xAI. Under this deal, Anthropic will lease the full 300-megawatt computing capacity of xAI's Colossus1 data center, situated near Memphis, Tennessee, USA. As per the agreement, Anthropic intends to pay $1.25 billion monthly by May 2029. There will be discounted rates applicable for the initial two months. Additionally, the agreement features a 90-day advance notice termination clause.

The specifics of this transaction are drawn from the prospectus that SpaceX submitted to the U.S. Securities and Exchange Commission (SEC). SpaceX mentioned that this strategic move enables it to transform unused computing power into revenue and expects to ink more such contracts in the future. By leasing out its idle computing resources, xAI has transitioned into a third-party service provider, pioneering a 'new cloud' business model. This innovative model aids in mitigating its infrastructure investment expenses, boosting asset utilization, and enhancing revenue predictability. Previously, owing to a drop in the user base of xAI's premier AI assistant, Grok, servers remained underutilized. This long-term agreement not only guarantees crucial resources for Anthropic but also paves the way for growth for xAI and SpaceX in the realm of 'computing power sales.'