Anthropic agrees to spend up to $120.5 billion on SpaceXAI computing

The scale of the computing deal

Anthropic has officially disclosed a massive financial commitment to SpaceXAI, the artificial intelligence division of Elon Musk's SpaceX. According to a public filing for an initial public offering, the AI company pledged to distribute a maximum of $120.5 billion toward processing power over a timeframe reaching into 2029.

This figure represents a significant increase from previous estimates, as it is about $36 billion higher than the $84.5 billion reported in a confidential version of the prospectus. The arrangement ensures that the makers of the Claude chatbot will have consistent access to the computing capacity needed to develop their models.

The infrastructure for this deal relies heavily on hardware from Nvidia Corp. The agreement is structured to scale over time, with different fees applying as the capacity ramps up. Anthropic expects the full delivery of this capacity to be completed by December.

Ramping up payments and capacity

The financial structure of the deal is designed to increase as SpaceXAI delivers more hardware and data center space. Initially, the arrangement was characterized as a monthly expenditure of $1.25 billion for space at the Colossus data centers located in Memphis, Tennessee.

Once the full capacity is delivered, the monthly payments are expected to reach approximately $3.1 billion. At this peak rate, Anthropic would be paying SpaceX more than $37 billion every year. This steady stream of income is a primary driver for the growth of SpaceX's AI business, which the company now refers to as Super Intelligence.

SpaceX's chief financial officer, Bret Johnsen, noted that the market demand for these types of computing resources is currently moving faster than the supply. He told analysts that new computing deployments are currently paying for themselves in less than one year. He also noted that pricing is currently situated just above the upper limit of the 30 to $50 per watt range.

SpaceX's growing AI revenue

Anthropic is already a cornerstone of SpaceX's current financial health. In a recent quarterly report, SpaceX identified a single customer, widely believed to be Anthropic, as accounting for 34.5% of its $14.58 billion third-quarter revenue. This single customer contributed roughly $5 billion to the company's total earnings for that period.

The Super Intelligence unit brought in $7.56 billion in the same quarter, helping the company achieve a net income of $4.4 billion. To meet the growing demand for these services, SpaceX is taking on debt to expand its infrastructure. This includes a confirmed $40 billion deal to lease Nvidia chips, which is being financed by Apollo Global Management Inc.

Musk has expressed high expectations for the growth of this sector, suggesting that annual recurring revenue could reach $100 billion by the end of this year. He further predicted that these figures could climb to between $500 billion and $1 trillion by the end of 2027. He argues that SpaceX's existing income from Starlink and rocket launches gives it a competitive edge over smaller rivals.

Contractual terms and outlook

While the $120.5 billion figure is a maximum ceiling, it is not a guaranteed total amount that Anthropic must spend. The contracts are designed to be stable in the short term, as they cannot be cancelled during initial periods that conclude in early 2027. After that point, either party will have the right to end the agreement by providing 90 days' notice.

The deal is significant because a large portion of SpaceX's growth is now tied to this specific contract. If Anthropic chooses to walk away in 2027, it would represent a major shift for SpaceX's revenue model. However, the current filing shows a deep integration between the two companies' long-term goals.

SpaceX shares have recently traded near $148, which is above the $135 IPO price set in June but lower than previous peaks. The company's ability to maintain its lead in the AI infrastructure space will depend on its ability to manage these massive hardware leases and data center expansions. Anthropic's offering remains subject to review by the U.S. Securities and Exchange Commission.