# xAI leases 1.2M GPUs, earns $41.1B yearly from Microsoft, Anthropic and others

Digest AI · Hardware & Compute · published 2026-10-29T05:32:00Z

Canonical: https://digestai.news/story/xai-leases-1-2m-gpus-earns-41-1b-yearly-from-microsoft-anthropic-and-o

## Summary

xAI, SpaceX’s AI division, is positioning itself as an AI infrastructure provider by leasing out its GPU capacity. On October 1, 2026, reports emerged that Microsoft was in early discussions with xAI about leasing compute resources, signaling a shift from xAI’s original focus on training its own models. The division’s Colossus 2 data center already houses 550,000 GPUs, with plans to expand to **1.21 million by year-end**—including **220,000 GB300s** in October, November, and a conditional **220,000 in December**. Including Colossus 1, xAI’s total GPU capacity could reach **1.44 million units**, according to Tom’s Hardware, though Elon Musk called the December addition “conditional” due to supply chain constraints.

xAI’s annual lease revenue hit **$41.1 billion** in September 2026, per CFO Bret Johnson. Key clients include **Anthropic ($15B annually)**, **Google ($920M/month)**, and **Reflection AI ($1.5B annually)**. A fourth undisclosed client is set to pay **$1.11B/month starting December 2026**, bringing monthly revenue to **$3.4B**. xAI’s ability to bypass power grid limitations—by building its own **1.2GW gas-fired plant**—has accelerated its expansion. Meanwhile, Colossus 1, originally built for Grok training, is now leased to Anthropic for inference, while Colossus 2 remains dedicated to xAI’s own model training. Musk aims for **50 million H100-equivalent GPUs by 2030**, hinting at future orbital data centers via SpaceX’s satellite network, though NVIDIA’s Jensen Huang dismissed this as unrealistic for now.

## Key points

- xAI’s Colossus 2 will have **1.21 million GPUs by year-end**, up from 550,000, with **220,000 GB300s** added in October, November, and a conditional batch in December
- Annual lease revenue reached **$41.1 billion**, with clients like Anthropic ($15B/year), Google ($920M/month), and an undisclosed client paying **$1.11B/month starting December 2026**
- xAI is leasing older GPU clusters (Colossus 1) to competitors like Anthropic while using newer GPUs (Colossus 2) for its own model training

## Why it matters

xAI’s shift from model training to infrastructure leasing disrupts cloud dominance, offering AI labs like Microsoft, Anthropic, and Google a faster alternative to traditional hyperscalers. The **$41.1B revenue** and **1.2M+ GPUs** signal a new era where AI compute becomes a commoditized, rented resource—potentially reshaping industry economics and reducing reliance on AWS, Azure, or Google Cloud.

## Sources

1. [SpaceXAI Transforms into an 'AI Infrastructure Landlord': Cloud Business Gains Momentum with Microsoft Contract Negotiations and 1.2 Million GPU Capacity](https://note.com/bamboolab/n/n3e6fe5e4ae92?hl=en) (note.com, 2026-10-29)

Part of the developing story: [Nvidia's AI Dominance Faces Supply and Competitive Threats](https://digestai.news/thread/nvidia-stock-falls-nearly-8-in-october-amid-ai-spending-doubts) (3 stories)

## Cite

Digest AI, "xAI leases 1.2M GPUs, earns $41.1B yearly from Microsoft, Anthropic and others", 29 October 2026, https://digestai.news/story/xai-leases-1-2m-gpus-earns-41-1b-yearly-from-microsoft-anthropic-and-o

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