In a significant move for the artificial intelligence landscape, Anthropic has finalized an agreement to pay xAI an astounding $1.25 billion per month for access to extensive AI compute capacity. This groundbreaking deal was disclosed in SpaceX’s S-1 filing with the U.S. Securities and Exchange Commission, highlighting the intertwining fates of two key players in the AI and space sectors.
Under the terms of the deal, Anthropic will gain access to 300 megawatts of compute capacity from the Colossus 1 data center, located near Memphis, Tennessee. Built primarily to support xAI’s infrastructure needs, the facility is expected to provide Anthropic with access to approximately 220,000 GPUs, which are essential for powering advanced AI models.
This contract, set to run until May 2029, has the potential to generate over $40 billion in total revenue for xAI if it remains intact for the full duration. Interestingly, the initial two months will see Anthropic benefiting from a discounted rate as xAI ramps up its capacity.
Compute Deal Disclosed in SpaceX Filing
The details of this monumental transaction came to light as part of SpaceX’s IPO prospectus, which described the agreement as a strategic approach to monetize unused compute capacity. SpaceX’s filing hinted at the possibility of entering into similar service contracts in the future, suggesting a robust growth strategy in the AI sector.
Moreover, the contract includes a clause that allows either party to terminate the agreement with a 90-day notice, providing both companies with the flexibility to adjust their commitments as AI demand and infrastructure capabilities evolve.
Recent analyses reveal that Anthropic is effectively paying more than $41 million per day for this compute capacity, amounting to approximately $15 billion annually. This figure notably exceeds earlier market estimates, which suggested that the deal would be worth around $6 billion per year.
Anthropic’s utilization of xAI’s infrastructure signifies the establishment of a commercial relationship between two major AI competitors. Anthropic is known for developing Claude, a prominent AI assistant that competes with OpenAI’s ChatGPT and xAI’s Grok.
Colossus Capacity Adds Revenue Channel
The Colossus 1 data center plays a crucial role in xAI’s infrastructure strategy. By leasing a significant portion of its available capacity to Anthropic, xAI creates a steady revenue stream from compute resources that may not be fully utilized by its own products. This approach aligns with what some industry analysts refer to as a neocloud strategy, whereby companies build AI infrastructure for internal use while also offering excess capacity to external clients.
SpaceX’s filing characterized this dual monetization strategy as a means to maximize returns on capital spent on infrastructure. Interestingly, the timing of this disclosure coincides with reports indicating a decline in Grok’s usage in recent months, which has left more server capacity available for outside contracts.
IPO Plans Put AI Spending in Focus
This monumental contract comes as both Anthropic and SpaceX are edging closer to public market activities. Anthropic is reportedly preparing for an IPO targeted for October 2026, with discussions placing a potential valuation near $1 trillion. Meanwhile, OpenAI is also expected to pursue a public listing, with a possible debut in September 2026, creating a competitive landscape among Musk-linked companies as investors evaluate AI revenues, infrastructure costs, and long-term business models.
SpaceX has officially filed its S-1 registration statement and aims to list on Nasdaq under the ticker SPCX, with an anticipated public debut as early as June 12, 2026. The compute agreement between Anthropic and xAI is likely to become a focal point for investor analysis, linking SpaceX and xAI infrastructure to contracted AI revenue. Investors will undoubtedly scrutinize the durability of the Anthropic contract, termination terms, and future demand for such services.
