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Tech

Anthropic strikes $35 billion cloud deal with Nvidia-backed Lambda

Anthropic has agreed to a $35 billion deal to buy computing power from Nvidia-backed cloud provider Lambda, the Wall Street Journal reported, citing unnamed sources.

The new capacity will be sourced from a Texas data center operated by bitcoin miner Hut 8, with Nvidia holding the underlying lease on the property, according to the report.

The arrangement is the latest example of the tangled web of deals reshaping the AI industry, with Nvidia serving simultaneously as landlord, chip supplier and facilitator across the transaction. Anthropic has now signed $175 billion in cloud deals in recent months as it looks to secure computing capacity ahead of an anticipated supply crunch.

The capacity for the Anthropic-Lambda deal will run through Hut 8's Beacon Point campus in Nueces County, Texas. Hut 8 had previously signed two 15-year leases covering 704 megawatts at the campus with an investment-grade customer later identified as Nvidia, which holds the primary facility lease. Those underlying contracts carry $19.6 billion in base-term contract value for Hut 8.

Once fully operational, the 704-megawatt Beacon Point campus is expected to generate an average of $1.31 billion in annual operating income for Hut 8.

Under the structure of the deal, Anthropic pays Lambda, Lambda installs Nvidia hardware, and Nvidia pays Hut 8 the underlying facility rent, a setup that guarantees Hut 8's long-term infrastructure revenue regardless of specific compute utilization.

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