Anthropic has put forth a significant proposal to acquire up to $10 billion in computing resources from Meta over a span of two years. As of July 17, 2026, Meta is still deliberating this offer. Despite being a direct competitor through its development of the Llama AI model, Meta is contemplating the possibility of becoming a provider of infrastructure for Anthropic’s Claude AI.
In a strategic move, frontier labs are opting to decouple model development from the ownership of computing infrastructure. They are entering into a diverse range of agreements, including public cloud contracts, dedicated computing deals, long-term leases for data centers, and custom-built facilities in collaboration with partners. This approach, while distributing risk among model developers, infrastructure managers, financial backers, and utilities, does not eliminate the inherent risks associated with construction, financing, or regulatory permits—many aspects of which remain confidential within the contracts.
Anthropic continues to rely on substantial workloads hosted on platforms such as Amazon and Google Cloud, which means these endeavors don’t replace public cloud services. Recent arrangements illustrate this strategic pivot: Firstly, a dedicated compute agreement sees Anthropic reportedly paying $1.25 billion monthly to xAI for the Colossus 1 facility in Memphis, a deal that runs through May 2029 and allows either side to terminate with 90 days' notice. Secondly, Anthropic has inked a standard real estate lease with TeraWulf, announced on July 6, 2026. This 20-year agreement covers approximately 401 megawatts in Hawesville, Kentucky, with expected revenues of about $19 billion, supported by investment-grade credit, and initial capacity rollout slated for the latter half of 2027. The third to note is the preliminary nature of the Meta proposal, which might not lead to a finalized agreement. Additionally, in November 2025, Anthropic committed $50 billion towards developing custom infrastructure in Texas and New York in partnership with Fluidstack, specifically tailored for its workloads; however, details on ownership, financing, or land arrangements remain unspecified.
When it comes to managing the risks associated with building, Oracle has designated itself the tenant of Project Jupiter in Doña Ana County, New Mexico. This facility is set up to support OpenAI workloads and has been authorized for up to $165 billion in industrial revenue bonds, although the actual funds raised remain undisclosed. The site is currently pending an air quality permit from the New Mexico Environment Department, which has faced public scrutiny after residents noted that their names were used in supportive comments without consent. In response to regulatory concerns, Oracle proposed a shift from a gas-fired generation plan to a Bloom Energy fuel cell system and submitted a revised application for approval. While labs can delegate some permitting tasks to infrastructure partners, they cannot escape the necessity of securing valid permits. Oracle's capital expenditures saw a dramatic increase, totaling $55.7 billion in fiscal 2026, up from $21.2 billion the previous year. For fiscal 2027, Oracle anticipates its spending to reach around $70 billion, with total expenditures—including customer-funded projects—estimated between $90 and $95 billion. This trend is giving rise to new suppliers, such as Sharon AI, which revealed on July 16, 2026, a five-year cloud computing service agreement worth $1.32 billion with an undisclosed global AI lab, covering infrastructure in New Zealand and projecting revenue to start in 2027.
However, it's essential to acknowledge that contracted revenue doesn't equate to delivered revenue. TeraWulf’s $19 billion commitment spans 20 years and is contingent on future capacity creation, while Sharon AI's first revenues are not expected until 2027. The allocation of risk is more complicated than the surface numbers indicate. Various terms—including take-or-pay agreements, minimum revenue guarantees, and parent guarantees—shift risk exposure, and many of these specifics remain private. Investors should scrutinize whether tenant termination rights are shorter than financing durations. Furthermore, availability is linked to fluctuating demand; for instance, SpaceX noted that the Colossus setup aims to capitalize on unutilized compute resources, which may be influenced by current usage of Grok. Should xAI's demand for computing power increase, the financial dynamics of this arrangement could change significantly.
