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San Francisco: Anthropic has signed a long-term agreement worth an estimated $9.1 billion with Bitcoin mining company Riot Platforms Inc. to secure data centre capacity for its growing artificial intelligence operations, according to people familiar with the matter.

The deal highlights the escalating demand for computing infrastructure as Anthropic, the developer of Claude, works to expand capacity for customers using its AI tools.

Riot announced that it had secured a 20-year agreement to supply 191 megawatts of capacity from its Rockdale, Texas, campus to a leading frontier AI company. People familiar with the matter identified that customer as Anthropic.

The agreement represents one of the latest major infrastructure commitments by Anthropic as AI companies race to secure enough computing power to support increasingly demanding models and applications.

Riot expects the contract to generate about $9.1 billion in revenue through June 2048. The agreement also includes options for two additional five-year extensions, which could increase the total value of the contract to as much as $16.1 billion.

Anthropic expands its computing capacity

Anthropic has been pursuing multiple agreements with cloud and data centre providers as demand for its AI products continues to rise.

The company has faced challenges keeping pace with customers seeking access to its artificial intelligence tools. As AI models become larger and more computationally intensive, developers increasingly need access to specialised data centres capable of providing large amounts of electricity and processing capacity.

The Riot agreement provides Anthropic with a long-term source of infrastructure capacity at a time when competition for AI computing resources is intensifying.

The 191-megawatt allocation from Riot’s Rockdale facility represents substantial power capacity. Riot said the amount would be enough to supply approximately 143,000 homes at any given moment, illustrating the scale of electricity consumption associated with modern AI infrastructure.

For Anthropic, securing capacity over two decades could provide greater certainty as it expands its AI operations.

Riot transforms from Bitcoin miner to AI infrastructure provider

The deal also marks another step in Riot’s transformation from a cryptocurrency-focused company into a broader data centre infrastructure provider.

Riot is best known as a Bitcoin mining company, but it is now seeking to capitalise on the explosive growth of artificial intelligence by repurposing and developing its infrastructure for AI computing.

The company’s Rockdale campus in Texas is becoming an important part of that strategy.

Crypto mining companies have increasingly attracted interest from AI developers because they often control large-scale facilities with access to substantial electricity supplies. Those characteristics can potentially be adapted to meet the requirements of AI data centres.

Riot is among several cryptocurrency companies exploring this opportunity.

The shift provides miners with another potential source of revenue at a time when the economics of cryptocurrency mining can fluctuate significantly depending on Bitcoin prices, mining difficulty and energy costs.

Contract could generate $16.1 billion

Under the initial agreement, Riot expects to receive $9.1 billion in revenue over the 20-year term.

However, the contract contains two options allowing Anthropic to extend the arrangement by five years each. If both options are exercised, the agreement could generate as much as $16.1 billion in total sales for Riot.

The exceptionally long duration of the agreement demonstrates the importance of reliable computing infrastructure for AI companies.

For Riot, the contract provides a potentially stable and predictable revenue stream stretching into the 2040s. For Anthropic, it offers access to dedicated infrastructure that can support its long-term growth.

Such arrangements are becoming increasingly common as AI companies attempt to secure electricity, computing hardware and data centre space ahead of expected demand.

Riot shares surge following the announcement

Investors reacted strongly to the news.

Riot’s shares jumped 25% to $24.40 in late trading following the announcement of the Anthropic agreement.

The sharp increase reflects investor enthusiasm over Riot’s ability to diversify beyond cryptocurrency mining and establish itself as an AI infrastructure provider.

The company’s data centre operations are becoming an increasingly important part of its financial performance. Riot recently exceeded sales expectations for the second quarter, with its data centre business contributing to the result.

The Anthropic agreement could further strengthen the investment case for Riot’s transition towards AI- infrastructure.

However, building and converting facilities for AI workloads can require significant capital investment. Riot will need to execute on the development of its infrastructure while ensuring that its facilities can meet the technical and power requirements of advanced AI computing.

Anthropic signs several major infrastructure agreements

The Riot agreement is not an isolated investment by Anthropic.

The Claude developer has recently entered into several major arrangements to secure additional computing capacity.

The company recently signed a $10 billion deal with Volta Infra Holdings Ltd., an infrastructure startup that was only recently established.

Anthropic also agreed in May to purchase nearly $45 billion worth of computing power from Elon Musk’s xAI.

These agreements illustrate the enormous infrastructure requirements facing major AI developers.

The demand for AI services has grown rapidly, forcing companies such as Anthropic to think beyond traditional cloud-computing arrangements. Securing dedicated capacity can help developers reduce the risk of shortages while supporting the rollout of more powerful models.

At the same time, these commitments represent significant long-term financial obligations.

AI boom creates opportunity for crypto companies

Riot’s shift reflects a broader trend across the cryptocurrency industry.

Several crypto companies that accumulated large amounts of electricity capacity and data centre infrastructure during the Bitcoin mining boom are now exploring ways to redirect those assets towards AI workloads.

The economics of AI data centres can be attractive because customers may be willing to sign long-term contracts for reliable access to electricity and computing capacity.

This has created a new opportunity for cryptocurrency miners that have access to suitable facilities and power resources.

Riot has already announced a separate agreement involving Advanced Micro Devices Inc. as it develops its computing infrastructure strategy.

The company’s transition illustrates how the AI boom is changing the economics of the data centre industry. Electricity availability, land and grid connections have become increasingly valuable assets as technology companies build increasingly power-hungry AI systems.

AI companies face an infrastructure race

Anthropic’s agreement with Riot comes as AI developers compete for access to the physical infrastructure needed to train and operate advanced models.

The industry’s growth is no longer determined only by access to chips and software. Data centre capacity, electricity and cooling infrastructure are becoming equally important constraints.

AI models can require enormous computing resources, particularly during training and when serving large numbers of users.

Anthropic’s recent agreements suggest the company is attempting to get ahead of those constraints by locking in infrastructure well into the future.

The Riot deal’s 20-year duration is particularly notable because technology companies typically operate in a rapidly changing environment. Nevertheless, the agreement could provide Anthropic with greater certainty over its physical computing footprint.

A major opportunity for both companies

The partnership gives both Anthropic and Riot an opportunity to benefit from the rapid expansion of artificial intelligence.

Anthropic gains access to substantial data centre capacity, helping it address the growing demand for Claude and other AI products. Riot, meanwhile, gains a long-term customer and a major new revenue source outside Bitcoin mining.

The deal could also accelerate Riot’s evolution into a major AI infrastructure provider.

For investors, the agreement demonstrates how companies with access to power and data centre facilities are increasingly becoming valuable participants in the AI economy, even if their original businesses were un to artificial intelligence.

Conclusion

Anthropic’s $9.1 billion agreement with Riot Platforms highlights the extraordinary infrastructure requirements created by the AI boom. The 20-year deal gives Anthropic access to 191 megawatts of capacity at Riot’s Texas campus while providing Riot with a long-term revenue stream that could reach $16.1 billion if extension options are exercised.

The agreement also reflects a broader transformation in the cryptocurrency industry, with Bitcoin miners increasingly looking towards AI data centres as a new growth opportunity. As demand for AI computing continues to rise, access to electricity and data centre capacity is likely to remain one of the industry’s most important strategic challenges.