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Anthropic to pay xAI $1.25B monthly for compute through 2029, leveraging excess capacity.

Market News
20 May 2026
TechCrunch
View Source
Neutral
pluang ai news

Anthropic has agreed to pay xAI $1.25 billion per month until May 2029 for the use of 300 megawatts of compute power from xAI's Colossus 1 data center. This deal, revealed in SpaceX's SEC filing, allows xAI to monetize its unused compute capacity, potentially generating over $40 billion in revenue. The contract can be terminated by either party with 90 days' notice. This arrangement reflects a new 'neocloud' model where AI companies offset infrastructure costs by acting as cloud providers when their own usage is low, highlighting xAI's strategy to maximize returns and manage excess capacity ahead of a public offering.

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