The three biggest names in AI just decided that their own backyards aren’t big enough. xAI is selling cloud compute, Meta is building enterprise software agents, and Anthropic is designing its own server chips.
The most jaw-dropping number in this reshuffling: xAI has signed a deal to provide Anthropic with computing resources from its Colossus and Colossus II clusters worth approximately $1.25 billion per month, running through May 2029. The total value could land somewhere between $40 billion and $45 billion.
The deal that rewrites AI economics
Elon Musk’s AI lab built those massive Colossus clusters to train Grok, its flagship model. Now it’s turning surplus capacity into a revenue machine, essentially becoming a cloud infrastructure provider that competes with the likes of Amazon Web Services, Google Cloud, and Microsoft Azure.
Anthropic, on the other hand, gets access to hundreds of megawatts of computing power. The $1.25 billion monthly price tag makes this one of the largest infrastructure agreements in tech history. It also creates a fascinating dynamic where xAI is simultaneously competing with Anthropic in the AI model space while serving as its landlord.
