TLDR
- Anthropic agreed to a 20-year computing deal with Riot Platforms worth an expected $9.1 billion.
- Riot will provide 191 megawatts of computing capacity from its Rockdale, Texas campus to Anthropic.
- The agreement runs through June 2048, with two five-year extensions potentially raising sales to $16.1 billion.
- Riot Platforms shares jumped about 25% in extended trading following disclosure of the Anthropic agreement.
- The deal expands Riot’s move from Bitcoin mining toward providing data center capacity for artificial intelligence workloads.
Anthropic has agreed to purchase computing capacity from Bitcoin miner Riot Platforms under a 20-year deal expected to generate $9.1 billion in revenue, linking the AI sector with expanding data center operations.
Riot disclosed the agreement on Monday, saying it will supply 191 megawatts of computing capacity from its Rockdale, Texas, campus to a “leading frontier AI” company. People familiar with the matter identified that company as Anthropic, according to Bloomberg.
Riot Platforms Secures $9.1 Billion AI Computing Deal
Riot said the agreement runs through June 2048 and is expected to generate $9.1 billion in revenue over the initial contract period. The deal also gives Anthropic options to extend the arrangement twice for five years each.
If both extensions are used, Riot said total sales under the agreement could reach as much as $16.1 billion. The company did not publicly identify Anthropic when announcing the contract, while Riot and Anthropic declined to comment on the reported identity of the customer.
The 191 megawatts of computing capacity will come from Riot’s Rockdale campus in Texas. Riot compared the electricity capacity with the power needs of roughly 143,000 homes at any given time.
Riot shares rose 25% to $24.40 in late trading after the agreement was reported. The stock move followed the company’s disclosure of the long-term AI computing contract.
Anthropic Expands Computing Capacity
Anthropic has been securing additional computing resources as demand for its Claude artificial intelligence products increases. The company has signed several agreements with infrastructure providers as it expands the capacity available for AI workloads.
Anthropic recently agreed to a $10 billion computing deal with Volta Infra Holdings, a relatively new infrastructure company. The AI developer also agreed in May to purchase nearly $45 billion worth of computing capacity from Elon Musk’s xAI.
The agreements form part of Anthropic’s broader effort to secure computing resources for its AI services. Demand for AI systems has increased the need for large data centers with access to substantial electricity and computing infrastructure.
The Riot agreement gives Anthropic access to capacity at a site that has historically been used for cryptocurrency mining. Riot’s shift toward AI data center services places the company among Bitcoin miners seeking additional uses for their power and infrastructure.
Bitcoin Miner Riot Expands Into AI Infrastructure
Riot was previously known as Bioptix and operated in the biotech equipment sector before moving into Bitcoin mining. The company has since expanded its business strategy to include data center capacity for artificial intelligence and other high-performance computing workloads.
Riot has also announced a separate agreement with Advanced Micro Devices to develop computing infrastructure. The company’s expansion comes as data center operators seek to serve growing demand from AI companies.
The Anthropic agreement provides Riot with a long-term customer for part of its Texas infrastructure. The contract runs for more than two decades, with additional extension options that could increase the total value of the arrangement.
The deal also reflects the growing connection between cryptocurrency mining infrastructure and artificial intelligence computing. Bitcoin miners have access to large power supplies and data center facilities, which can potentially be adapted for other computing uses.
Riot’s agreement with Anthropic remains subject to the terms disclosed by the company, while the reported identity of the customer was provided by people familiar with the matter.
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