Anthropic Orders 325,000 Nvidia GPUs for $1.25B Monthly Deal with 90-Day Exit
NVDA•Anthropic has contracted 325,000 Nvidia GPUs across its Memphis Colossus facilities, committing to $1.25 billion in compute payments each month through May 2029. The agreement includes a termination clause allowing either party to exit after three months with 90 days notice, creating volatility in over $15 billion of potential annual GPU revenue.
1. Deal Details
Anthropic signed a multi-year compute pact deploying 325,000 Nvidia GPUs across two Colossus data centers in Memphis, agreeing to $1.25 billion in monthly payments through May 2029. The scale of this order marks one of the largest single-client commitments for Nvidia hardware to date.
2. Termination Clause Impact
After an initial three-month period, either Anthropic or its provider can terminate the agreement with 90 days’ notice, reducing the locked-in revenue from $45 billion over three years to a much shorter visibility window. This flexibility injects uncertainty into Nvidia’s forward sales projections despite the headline figure.
3. Implications for Nvidia
The deal could substantially boost Nvidia’s GPU shipment volumes and revenue if fully executed, but the short exit terms limit long-term revenue certainty and could lead to sudden order cancellations. Nvidia may need to adjust inventory plans and guide investors on potential volatility in AI compute demand.
4. Market Context
Anthropic’s compute agreement underscores intensifying competition among AI firms for Nvidia chips, as some peers pursue in-house infrastructure to reduce reliance on external providers. Investors will monitor how these dynamics influence Nvidia’s ability to secure durable, high-value contracts.
