Anthropic will pay xAI $1.25 billion 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. Details of the transaction emerged from SpaceX’s S-1 filing with the SEC. The deal, the company said, “allows us to monetize unused compute capacity in our infrastructure.” The terms of the deal allow either side to terminate the contract with 90 days’ notice.  “We expect to enter into additional similar services contracts,” the filing stated. The move has given xAI a hybrid stance in the AI market. Most players either build data centers for themselves or build data centers for others to use — rarely both simultaneously. This emerging model, sometimes called a “neocloud,” lets AI companies offset infrastructure costs by acting as a cloud provider when their own usage falls short of capacity. SpaceX argues the arrangement is a savvy use of resources. “We believe our dual monetization strategy provides multiple pathways to generate returns on invested capital,” it wrote. The subtext is hard to miss, though. xAI appears to have overbuilt its compute capacity and needed to find a way to monetize it ahead of a public offering. Usage of Grok — xAI’s flagship AI assistant — has dropped significantly in recent months, freeing up servers that the company is now selling to one of its closest competitors.  StrictlyVC Athens is up next. Hear unfiltered insights straight from Europe’s tech leaders and connect with the people shaping what’s ahead. Lock in your spot before it’s gone. Newsletters See More Subscribe for the industry’s biggest tech news Every weekday and Sunday, you can get the best of TechCrunch’s coverage. TechCrunch Mobility is your destination for transportation news and insight. Startups are the core of TechCrunch, so get our best coverage delivered weekly. Provides movers and shakers with the info they need to start their day. By submitting your email, you agree to our Terms and Privacy Notice. Anthropic will pay xAI $1.25 billion per month for compute Tim De Chant 10 seconds ago AI OpenAI claims it solved an 80-year-old math problem — for real this time Rebecca Bellan 1 hour ago AI IrisGo, a startup backed by Andrew Ng, looks to become the AI desktop buddy you never knew you needed Lucas Ropek 2 hours ago X LinkedIn Facebook Instagram youTube Mastodon Threads Bluesky TechCrunchStaffContact UsAdvertiseCrunchboard JobsSite Map Terms of ServicePrivacy PolicyRSS Terms of UseCode of Conduct AnthropicSAPSamsungMarc LoreTechCrunch DisruptTech LayoffsChatGPT © 2026 TechCrunch Media LLC.