Anthropic has signed a significant compute procurement agreement with xAI, committing to a $1.25 billion monthly payment until May 2029. This partnership, potentially exceeding $40 billion in total value, is detailed in SpaceX's S-1 filing with the U.S. Securities and Exchange Commission. The deal allows Anthropic to utilize xAI's unused computing capacity, with a discounted rate for the initial two months to facilitate xAI's capacity ramp-up. The agreement marks a strategic shift for xAI, which is now adopting a hybrid model by selling excess computing power externally while maintaining internal use. This dual-revenue strategy aims to enhance capital returns and asset utilization, as xAI's initial production capacity expansion has outpaced its internal needs. The collaboration is one of the largest in the AI infrastructure market, reflecting a trend towards monetizing surplus computing resources.