Some afternoon news from an unsigned xAI press release:
SpaceXAI has signed an agreement with Anthropic to provide access to Colossus 1, one of the world’s largest and fastest-deployed AI supercomputers.
Built from the ground up in record time, Colossus delivers unprecedented scale for AI training, fine-tuning, inference, and high-performance computing workloads. Colossus 1 features over 220,000 NVIDIA GPUs, including dense deployments of H100, H200, and next-generation GB200 accelerators. The cluster delivers extreme parallel performance for large language models, multimodal systems, scientific simulations, and generative AI at frontier scale.
Anthropic plans to use this additional compute to directly improve capacity for Claude Pro and Claude Max subscribers.
Anthropic confirmed the news via an unsigned press release:
We’ve agreed to a partnership with SpaceX that will substantially increase our compute capacity. This, along with our other recent compute deals, means that we’ve been able to increase our usage limits for Claude Code and the Claude API.
…and included a detail that SpaceXAI1 left out:
We’ve signed an agreement with SpaceX to use all of the compute capacity at their Colossus 1 data center. This gives us access to more than 300 megawatts of new capacity (over 220,000 NVIDIA GPUs) within the month. This additional capacity will directly improve capacity for Claude Pro and Claude Max subscribers.
Let me repeat part of that for emphasis:
We’ve signed an agreement with SpaceX to use all of the compute capacity at their Colossus 1 data center.
As a native Memphian who has watched xAI pollute our air, make tools for creating horrific content, and go back on its word to local leaders, this is both infuriating and hilarious.
Colossus 2 is up and running and Musk says xAI no longer needs the first site.
Russell Brandom has more at Techcrunch:
In the short term, there’s an obvious logic at work. xAI’s existing products are mostly focused on Grok, which has seen plummeting usage since the image generation debacles earlier this year. If xAI’s data center buildout is that much more than what Grok needs to operate, partnering with Anthropic adds a lot of green to the balance sheet. This is especially useful as the company, now combined with SpaceX, speeds towards an IPO. More broadly, having Anthropic lined up as a customer makes it easier to believe that SpaceX’s orbital data center play might actually work.
But beyond the short-term benefit, the Anthropic partnership sends an unusual message about where Elon Musk’s priorities really lie. It suggests the company’s real business may be more about building data centers than training AI models.
I wonder if this is the reason the planned water treatment plant for the first site is now on hold. If xAI isn’t operating Colossus 1, the company may want out of it, despite previous comments.
Anthropic seems to be backed into a corner when it comes to capacity. I can’t imagine everyone there was super pumped to be associated with xAI, and the partnership will certainly cause some to sour on the company and its products.
I don’t know if Anthropic will have any real presence in Memphis. Some may see this as a chance for a bit of a reboot when it comes to the public relation issues xAI has faced here, but it I don’t have high hopes for that. Anthropic is merely leasing capacity, not taking over the data center outright.
Even if Colossus 1 were to change hands, the only meaningful thing Anthropic could do (from an environmental standpoint) would be to get the water treatment plant back on track. The site isn’t going to be able to move to cleaner energy anytime soon, no matter what chatbot is running on its servers.
Claude customers will see a benefit, and SpaceX’s books will look a little better, but that’s all the change I see coming with this news.
Original post updated to reflect the news that xAI had already moved to its Colossus 2 site.
- In case you missed it, SpaceX now owns xAI, which in turn owns the X social network. SpaceX seems to have been the only one of the three making any money. As a fan of cool rockets and a non-fan of X and xAI, this has stirred complicated feelings for me. ↩