Anthropic will pay xAI $1.25 billion per month for compute
Anthropic has entered a significant deal with xAI, agreeing to pay $1.25 billion per month for compute resources. This contract, which lasts until May 2029, could generate over $40 billion in revenue for xAI. The arrangement allows xAI to monetize excess compute capacity while providing Anthropic with necessary resources for its operations.
- ▪Anthropic will pay xAI $1.25 billion per month for compute through May 2029.
- ▪The deal secures the entire output of the Colossus 1 data center near Memphis, Tennessee.
- ▪xAI's arrangement allows it to monetize unused compute capacity in its infrastructure.
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| Original publisher | TechCrunch |
| Canonical URL | https://techcrunch.com/2026/05/20/anthropic-will-pay-xai-1-25-billion-per-month-for-compute/ |
| Publication time | Wed, 20 May 2026 21:29:22 +0000 |
| Retrieval time | 2026-05-20T21:35:03.014Z |
| Last seen | 2026-05-20T21:35:03.014Z |
| Headline source | Publisher (no WeSearch rewrite) |
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| Summary | WeSearch · cerebras-chat (WeSearch summarizer) |
| Summary source text | contentText |
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| Cluster | GkuO2Td5meX8 · 3 stories |
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| Publisher visit | Yes — open original |
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| Retrieval / RAG | May the content be exposed for third-party retrieval-augmented generation? | Not asserted |
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Opening excerpt (first ~120 words) tap to expand
In Brief Posted: 2:29 PM PDT · May 20, 2026 Image Credits:Jakub Porzycki / NurPhoto / Getty Images Tim De Chant 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.
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