The 90-Day Time Bomb Hidden in Anthropic's Huge SpaceXAI Deal

At a glance

Anthropic's compute deal with SpaceXAI, worth up to $120.5 billion, runs through 2029. However, how much revenue it actually brings depends on its cancellation terms. After the non-cancellable period ends, either side can end the deal with 90 days' written notice.

Key points

1. 1

   A compute contract is a promise to rent AI infrastructure.

2. 2

   Monthly payments are reported to be about $3.1 billion starting this December.

3. 3

   The non-cancellable periods end in January and March of next year, and termination could happen as early as April to June of next year.

4. 4

   The 2029 expiration is the period when service is available, while the 90-day notice determines the actual revenue period.

Why it matters

The profitability of AI data center investments depends on whether large contracts turn into real revenue, so knowing the cancellation terms matters.