Riot Secures US$9.1B Deal with Anthropic Amid AI Computing Boom
Anthropic PBC has secured a massive deal with Riot Platforms Inc to power its AI operations. The agreement, worth US$9.1 billion, will see Riot supply computing capacity from its Texas campus to Anthropic over the next two decades.
Riot's shares jumped 25% in late trading after the news broke, closing at US$24.40. The deal is part of Anthropic's efforts to meet customer demand for AI tools, which have been struggling to keep up with demand.
Anthropic has signed several deals with cloud computing suppliers in recent months, including a US$10 billion agreement with Volta Infra Holdings Ltd and a US$45 billion purchase from Elon Musk's xAI. The latest deal with Riot also includes an option to extend the contract twice, by five years each, potentially generating up to US$16.1 billion in revenue.
Riot Platforms has been expanding its business beyond bitcoin mining, capitalizing on the AI boom by offering data center capacity and other services. The company's data centre business contributed to its beating sales expectations in the second quarter.