According to media reports, Anthropic has signed a deal worth $45 billion with UK-based firm Nscale. The deal entails the AI infrastructure company providing AI compute capacity of 460 megawatts to Anthropic starting in 2027.
The data center that will provide this compute power is located in West Virginia. The lease agreement spans six years.
The deal with Nscale comes at a time when Anthropic has negotiated and signed similar compute deals with a number of entities that include Volta, a startup that owns a data center located in Norway. This deal was signed earlier in August. Another deal worth $5 billion was signed with Advanced Micro Devices in July, while Anthropic signed a compute deal with SpaceX that will provide capacity worth $1.25 billion every month.
Anthropic explained that these compute deals are intended to ramp up the capability of its models in the wake of the user base growing considerably. The firm explained that their systems were getting strained each time usage spiked and the performance of their models was suffering as a result.
The numbers support this explanation, because Anthropic saw its quarterly revenue rise significantly to the extent that it exceeded what rival OpenAI obtained in the just-ended quarter. Anthropic’s revenue was $11.6 billion while OpenAI reported $6.7 billion as revenue for that quarter.
This outperformance was the first-ever for Anthropic in its competition with OpenAI, and it shows that Anthropic may be poised to pull ahead of its main U.S. rival if this recent performance wasn’t a one-off.
These great earnings, together with the push to secure even more compute capacity, position Anthropic well as it seeks to go public in October. The firm is reportedly looking to get a valuation of at least $2 trillion during its IPO, and if that is attained, Anthropic’s IPO would go down as the biggest ever IPO in history.
The revenue numbers and added compute capacity also give the company great talking points when courting prospective investors in the run-up to the IPO. The firm is also projecting that its addressable market will reach $30 trillion, which offers a huge opportunity for enviable shareholder value if the company corners a significant share of that market over the coming years.
It looks like the race among AI labs will partly be fought on who can access the greatest amount of compute capacity for their models, and that could create lucrative opportunities for firms like Amazon.com Inc. (NASDAQ: AMZN) that have invested heavily in AI infrastructure like data centers.
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