Anthropic has struck a deal to use all of the compute capacity from xAI’s first data center in Memphis within the coming month, the company said on Wednesday. The data center, known as Colossus 1, has 300 megawatts of capacity and more than 220,

In an unexpected turn, the two companies signed a deal for Anthropic to use computing resources from Elon Musk’s xAI.

Anthropic will use SpaceX’s Colossus 1 supercomputer to expand Claude capacity, while exploring future orbital AI compute infrastructure.

The parent company of Claude is set to be the 'sole tenant' of Colossus 1, according to Mayor Young

Musk’s version of a neocloud is more ambitious, as you might expect. Some of the data centers might be in space — at least by 2035, if things go according to plan. xAI will be making its own chips at the Terafab, which will take away some but not all of Nvidia’s pricing power. But none of it changes the basic economics of the neocloud business.

SpaceXAI is clunky, but Musk says it's meant to highlight 'AI products from SpaceX.'

Elon Musk’s xAI Corp. is looking to expand its sprawling artificial intelligence data center complex in Memphis after purchasing a third building at the site. It’ll house thousands of new servers that cater to AI models and bring the site’s total ...