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Anthropic strikes $9B compute deal with Bitcoin miner Riot: Report

Created at 11 Aug · 8:06 AM1 source↑ Market-relevant
IN SHORT

Anthropic has reportedly secured a 20-year, $9 billion agreement with Bitcoin miner Riot Platforms for 191 megawatts of capacity from its Texas campus. This deal signifies a growing trend of AI companies partnering with Bitcoin miners to meet their substantial computing power needs.

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Key Numbers

$9 billionvalue of Anthropic-Riot compute deal
191 megawattscomputing capacity to be supplied
20 yearsduration of the agreement
$19 billionAnthropic's prior deal with TeraWulf
53%Riot stock year-to-date gain
$7.33 billionRiot market capitalization

Who's Involved

Anthropic
leading frontier AI company securing compute capacity
Riot Platforms
Bitcoin miner supplying compute capacity
Bloomberg
reported the deal value and customer
TeraWulf
Bitcoin miner with whom Anthropic previously contracted
Bernstein
analyst firm noting AI-miner partnerships are necessary

↳ Why This Matters

The substantial compute deal between Anthropic and Riot Platforms underscores the immense and growing demand for power-intensive computing resources driven by AI development, highlighting a new revenue stream for Bitcoin miners and potentially alleviating power constraints for AI infrastructure.

Key facts

  • Riot Platforms has entered into a 20-year agreement to supply 191 megawatts of capacity.
  • The agreement is with Anthropic, a leading AI company.
  • The deal is reportedly valued at approximately $9 billion.
  • Riot's Rockdale campus in Texas will provide the computing capacity.
  • This follows Anthropic's prior $19 billion data center lease deal with TeraWulf.

Riot Platforms has announced a 20-year agreement to supply 191 megawatts of computing capacity from its Rockdale, Texas, campus to a prominent artificial intelligence company. The customer has been identified as Anthropic, with the deal reportedly valued at approximately $9 billion, according to a Bloomberg report citing sources familiar with the matter.

This significant agreement places Riot among a growing number of Bitcoin miners that are diversifying into providing high-performance computing power for AI applications. Anthropic itself recently entered into a similar 20-year data center lease agreement valued at $19 billion with another Bitcoin miner, TeraWulf.

Analysts at Bernstein have highlighted the necessity of such partnerships between AI firms and Bitcoin miners to address the power constraints currently limiting the expansion of AI data centers. Riot's shares experienced a notable increase in overnight trading following the news, despite an earlier dip on Monday. The company is recognized as one of the world's largest Bitcoin miners by market capitalization.

Frequently asked questions

The deal is reportedly valued at approximately $9 billion.

Riot Platforms will supply 191 megawatts of capacity.

The agreement is for a 20-year term.

AI companies require vast amounts of computing power and electricity, which Bitcoin miners, with their existing infrastructure and access to energy, can provide. This trend helps miners diversify revenue streams and addresses the power crunch faced by AI data centers.

What Happens Next

01Anthropic and Riot Platforms have been approached for comment.
02Further details on the specific terms and deployment of the capacity are expected.

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Cadence

How It Developed

Riot Platforms announced a 20-year agreement to supply 191 megawatts of capacity from its Rockdale, Texas, campus to a leading AI company.
Bloomberg reported the customer is Anthropic and the deal is valued at approximately $9 billion.
Anthropic previously struck a $19 billion deal for a 20-year data center lease with Bitcoin miner TeraWulf.

Sources

T1
Anthropic strikes $9B compute deal with Bitcoin miner Riot: ReportAnthropic reportedly struck a $9 billion deal with Riot for 191 megawatts of capacity from the Bitcoin miner’s Rockdale campus in Texas.Cointelegraph

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