Anthropic has signed a three‑year contract with Elon Musk's xAI to purchase the entire 300‑megawatt output of the Colossus 1 data center near Memphis, Tennessee. The deal, disclosed in SpaceX’s S‑1 filing, obligates Anthropic to pay $1.25 billion per month through May 2029, with a discounted rate for the first two months. The agreement could generate more than $40 billion in revenue for xAI and includes a 90‑day termination clause for either party. Industry observers see the arrangement as a rare "neocloud" model that lets AI firms monetize idle compute capacity.
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