Anthropic will pay xAI $1.25B per month in valuation

Earlier this month, Anthropic surprised the AI ​​world and a contract to buy 300 megawatts of computing power – all of which comes from the Colossus 1 data center near Memphis, Tennessee.

After all, calculations at this level are not cheap. Anthropic will be paying xAI $1.25 billion per month until May 2029, with a reduced interest rate in the first two months as xAI completes the upgrade. All told, the deal could bring xAI more than $40 billion in revenue.

Details of the sale emerged from SpaceX’s S-1 filing with the SEC. The deal, the company said, “allows us to generate capital that has not been used in our capital.” The agreement allows either party to terminate the agreement with 90 days’ notice.

“We hope to enter into other similar contracts,” he said.

This move has given xAI a unique position in the AI ​​market. Many players either build their own data centers or build data centers for others to use – usually both at the same time. This emerging model, sometimes referred to as the “neocloud,” allows AI companies to offset operational costs by acting as backups in the cloud when their operations fail.

SpaceX says the arrangement is a smart use of resources. “We believe that our two investment strategies offer multiple ways to generate value for invested businesses,” it wrote. But the understatement is hard to miss: xAI appears to have developed its computational capabilities and needs to find a way to monetize it before it can be offered to the public. The use of Grok – xAI’s main AI assistant – is he is very low in recent months, releasing servers that the company is selling to one of its biggest competitors.