GlobeNewswire·Nov 5, 2026, 2:55 PM ET

Elon Musk’s AI Rival Agreed to Pay Him $1.25 Billion a Month.

Anthropic agreed to pay SpaceX approximately $1.25 billion monthly for computing power over a three-year term ending in May 2029.
The potential value of the deal is nearly $45 billion, with either party able to terminate the agreement with 90 days' notice.
Anthropic will access SpaceX's Colossus & Colossus II AI data centers located in Memphis, Tennessee.
Analyst James Altucher argues that Musk aims to vertically integrate the AI industry by controlling both the models & the infrastructure.
SpaceX merged with xAI to combine rocket capabilities with advanced AI, enabling the deployment of supercomputers on satellites.
SpaceX filed plans with the FCC to deploy one million AI data center satellites in orbit.
Altucher notes that while Musk controls the AI "brain," the "nervous system" relies on an overlooked outside supplier for networking & communications gear.
The arrangement illustrates a business model where rivals compete on models while Musk profits by supplying the underlying computing hardware.