Anthropic is on the verge of its first operating profit, having told investors it expects to more than double revenue to around $10.9 billion in its second quarter — a milestone that arrives simultaneously with the revelation that it is paying rival xAI $1.25 billion per month for computing power.
The compute deal, disclosed through SpaceX’s SEC filing, sees Anthropic securing the entire output of xAI’s Colossus 1 data centre near Memphis, Tennessee — 300 megawatts of capacity — through May 2029, with a potential total value exceeding $40 billion. The arrangement exposes an unusual dynamic: Anthropic is bankrolling a direct competitor while xAI, whose Grok assistant has seen declining user numbers, monetises infrastructure it over-built ahead of its own public offering.
SpaceX described the arrangement as a dual monetisation strategy that generates returns on invested capital when internal usage falls short of capacity — a model increasingly referred to in the industry as a neocloud approach. Either party can exit with ninety days’ notice.
Anthropic’s profitability, though potentially temporary given forthcoming compute costs, reflects surging demand for its Claude assistant among professionals and a broadening customer base that now includes small businesses and law firms.
