BREAKING
Anthropic strikes $3.4 billion deal for 1.7GW gas power equipment ahead of IPO
The AI lab has taken over Caterpillar equipment orders to secure direct electricity supplies as grid lead times stretch across two years.
Anthropic has agreed a $3.4 billion deal to secure commitments for 1.7 gigawatts of heavy-duty gas-fired generators, taking direct control of energy infrastructure as power shortages threaten data centre expansion, according to the Financial Times.
The transaction, completed in late September with San Antonio-based supplier OnePWR Solutions, represents the largest known single purchase of power-generation equipment by an artificial intelligence laboratory. Under the terms of the agreement, Anthropic took over orders that OnePWR had placed with heavy equipment maker Caterpillar two years ago, locking in delivery schedules before manufacturing lead times stretched and prices rose.
Anthropic did not acquire OnePWR as a corporate entity, and no staff will transfer to the AI company, according to people familiar with the matter cited by the Financial Times. However, the deal includes the engineering and construction capabilities needed to install and integrate the generators.
Structure of the deal
By taking over pre-existing orders rather than buying a power producer outright, Anthropic secured equipment that is scheduled for delivery in the near term and over the next two years. At $3.4 billion for 1.7 gigawatts, the purchase works out to approximately $2.0 million per megawatt, or roughly $2,000 per kilowatt, including installation capabilities.
AI developers have historically relied on public utilities and third-party data centre operators to supply power. Long equipment backlogs and grid interconnect delays have forced frontier labs to use their capital to secure generation equipment directly.
| Company | Deal structure | Power capacity | Reported deal value |
|---|---|---|---|
| Anthropic | Generator order takeover (OnePWR/Caterpillar) | 1.7 GW | $3.4 billion |
| xAI | Mobile gas turbine purchase | Not disclosed | $2.0 billion |
| Alphabet | Acquisition of developer Intersect | Not disclosed | Not disclosed |
Arash Nazhad, managing director and head of clean energy and power at Stifel, told the Financial Times that tech companies are taking power generation in-house to protect themselves against external delays. "By owning some of their power infrastructure and having the capabilities in-house, companies believe they can better protect themselves against disruptions beyond their control," Nazhad said.
Why it matters
For founders, operators and investors in the technology sector, the transaction marks a shift in where capital expenditure is directed across the AI stack. Compute constraints are no longer defined solely by semiconductor supply, but increasingly by access to electricity and generation equipment.
Anthropic has relied heavily on external partners for power, chips, land and facilities. The company disclosed nearly $900 billion in computing commitments running through 2045, and expects to finance more than $895 billion of computing infrastructure spending over that timeline. Operating expenses are also escalating rapidly; Anthropic's monthly payments to SpaceX to lease compute capacity are expected to reach $3.1 billion by the end of the year.
Directly purchasing generation hardware gives the lab greater operational control, but it also increases capital exposure right as institutional investors evaluate its balance sheet.
Context and IPO preparation
The generator deal comes as Anthropic prepares for an initial public offering that could take place as early as November, ahead of Thanksgiving, according to reports in the Financial Times. The company is aiming to raise between $80 billion and $100 billion at a target valuation of $1.25 trillion to $1.75 trillion.
Anthropic holds close to $150 billion in cash and liquid investments, meaning the $3.4 billion generator purchase accounts for roughly 2.3% of its liquid reserves. It also represents between 3.4% and 4.25% of the capital the company seeks to raise in its upcoming listing.
However, financing massive physical infrastructure commitments presents debt market challenges. Investment bank Blackstone recently warned investors that Anthropic could receive a junk credit rating rather than an investment-grade rating, reflecting the capital-intensive nature of its long-term buildout.
What happens next
It remains unconfirmed where the 1.7 gigawatts of gas-fired generators will be deployed or which specific data centre sites they will support. Gas-fired data centre expansion faces local regulatory scrutiny in several jurisdictions, alongside broader supply chain constraints for electrical transformers and switchgear.
Anthropic and OnePWR both declined to comment on the transaction details to the Financial Times. Execution of the installation plan over the next 24 months will serve as a key test of whether an AI lab can manage heavy physical energy infrastructure alongside foundation model training.