Anthropic and SpaceX sign major AI compute deal, eye orbital data centers in space

Data Centers In Space? AI Race Turns Weird With Anthropic-SpaceX Deal

for Anthropic to use some of SpaceXAI's computing resources. Earlier this year, Musk took to X, the platform that he owns to call Anthropic's policies around AI misanthropic and evil and alleged without evidence, that Anthropic's AI models showed racial and sexual biases. But now he seems to have changed his tune, writing on X that he had spent time with senior leaders is good for humanity, and that he came away impressed. to find enough computers to run complex AI software. According to pretty much everyone in the tech industry I talk to, there just aren't enough chips and memory and server racks and cloud computing services to go around. This also happens to be a pivotal time for SpaceXAI, which is looking to go public as soon as next month. And this deal with Anthropic that Elon Musk just struck could bolster SpaceXAI's credibility while it's pitching investors on the potential gold mine of establishing even more data centers, including in space. There was this interesting part of the announcement that these two companies made where SpaceXAI said that Anthropic had quote, unquote, expressed interest in working together to develop orbital compute capacity. Anthropic was co-founded by Dario and Daniela Amodei So Musk, in signing a deal with Anthropic right now

Anthropic and Elon Musk Strike Unexpected Data Center Deal

The Claude maker needs all the computing capacity it can get, and SpaceX's controversial Memphis facility apparently has it. Just a few months ago, Elon Musk accused the AI company Anthropic of stealing artificial intelligence training data "at massive scale" in a post on his social network X. That apparently hasn't stopped the billionaire from doing business with the company. Musk's SpaceX has signed a data center deal that will give Anthropic access to more than 200,000 Nvidia GPUs worth of power at its Colossus 1 supercomputer facility in Tennessee. The partnership will give Anthropic additional firepower to "directly improve capacity for Claude Pro and Claude Max subscribers," SpaceX said in a website post. "As part of this agreement, Anthropic also expressed interest in partnering to develop multiple gigawatts of orbital AI compute capacity." Because of this deal, Anthropic said in its own post, the company is raising usage limits for users across some of its products. The changes, effective immediately, double Claude Code rate limits for users of Claude on Pro, Max, Team and seat-based Enterprise plans, remove peak-hour restrictions of Claude Code for Pro and Max accounts and raise API limits for Claude Opus models. In the same post, Anthropic listed some of its other data center agreements with companies, including Amazon, Google and Microsoft, and reiterated its intention to keep expanding internationally. In the era of data center backlashes, Anthropic also announced in February that it has pledged to cover the costs of energy price increases driven by data center activity. Critics have questioned how companies such as Anthropic can uphold those pledges. The deal with SpaceX, which acquired Musk's AI company xAI earlier this year, may have surprised some, but AI companies are scrambling to secure data center resources as they continue to develop increasingly data-hungry artificial intelligence models. At the same time, some communities are pushing back on new data center construction, leading some in the industry, Musk in particular, to plan to build data centers in space. Among the groups criticizing the deal is the NAACP, which said in a statement about SpaceX, "Any company that disregards the obvious environmental and health concerns of Black communities to supposedly power a future that will help us all is sending a clear message about who it intends to serve in that future... Anthropic's use of a data center that pollutes a historically Black community is, at best, an uninformed decision, and at worst, a total disregard for the community's wishes and health." The organization pointed to a lawsuit it has filed against SpaceX over environmental concerns at its Colossus 1 computing center.

Anthropic Gets in Bed With SpaceX as the AI Race Turns Weird

Anthropic and Elon Musk's SpaceX said on Wednesday that two entities have signed an agreement for Anthropic to use computing resources from xAI's data center in Memphis, Tennessee. It's the latest tie up in an industry that is scrambling to find enough computers to run complex AI software. SpaceX and xAI were previously separate companies, but the two merged earlier this year. The combined entity, also owned by Musk, is called SpaceXAI. Anthropic executives made the announcement on stage at the company's annual developer conference in San Francisco. SpaceXAI also put out a blog post sharing more details about the deal, which will see Anthropic draw power from the xAI's Colossus 1 supercomputer. The partnership comes at a pivotal time for SpaceXAI, which is seeking to go public as soon as next month. A relationship with a leading AI lab could bolster SpaceX's credibility as it pitches investors on the potential goldmine in establishing more data centers, including in space. Notably, Space XAI said in its blog post that Anthropic has "expressed interest" in partnering to develop "orbital AI compute capacity" -- essentially, data centers in space. Having Anthropic as a potential customer could help SpaceXAI boost investor confidence that there will be buyers for its super expensive, supercomputing project. Earlier this year, Musk criticized Anthropic's AI models in a post on X, calling the company's policies "misanthropic" and "evil," and alleging without evidence that the AI models showed racial and sexual biases. Now, he's significantly changed his tune, writing on X that he "spent a lot of time last week with senior members of the Anthropic team to understand what they do to ensure Claude is good for humanity and was impressed." Musk's SpaceXAI first broke ground on Colossus 1 on a former Electrolux site in 2024. The company claims that it is one of the largest and fastest AI supercomputers in the world. It includes roughly 220,000 Nvidia GPUs, ranging from Nvidia's H100 and H200 to its newer GB200 chips. The company likes to boast that it built the super computer in 122 days. Emissions from gas turbines at the data center have prompted numerous complaints from local residents. Last month, environmental protestors demonstrated at a nearby SpaceX investor gathering ahead of the IPO. Anthropic plans to use its newfound computing power to "directly improve capacity for Claude Pro and Claude Max subscribers," both companies said. The deal will give Anthropic access to more than 300 megawatts of new capacity, or approximately 220,000 Nvidia GPUs. In recent months, software developers have increasingly complained about rate limits and service disruptions to Claude Code, due to the physical limits of available computing resources. As more and more people use services like OpenAI's Codex and Anthropic's Claude Code -- sometimes running coding programs and agentic tasks for hours on end -- the services are being bogged down. According to Anthropic, the average developer is now spending at least 20 hours per week running Claude Code. Yesterday, The Information reported that Anthropic had committed to spend $200 billion on Google's AI cloud services and TPU chips. Anthropic has also used Amazon's cloud computing services and AI chips since 2023. Last month, Anthropic committed "more than $100 billion over the next ten years to [Amazon] technologies." According to the Information report, contracts with Anthropic and OpenAI now account for "more than half of the $2 trillion in backlogs at major cloud providers" like Amazon, Microsoft, and Google.

Musk's SpaceX has rented out access to its supercomputer's 220,000 Nvidia GPUs and 300 megawatts of AI compute power to rival Anthropic -- Musk says "No one set off my evil detector," Antrhropic also interested in orbital data centers

Anthropic announced in a press release on Wednesday that it has signed a deal with Elon Musk's SpaceX to use the company's massive Colossus 1 data center. According to a corresponding announcement from SpaceXAI, the deal will give Anthropic access to all of the massive supercomputer. That's over 222,000 Nvidia GPUs -- including powerful H100 and H200 chips alongside next-generation GB200 accelerator systems -- and 300 megawatts plus of compute power. Anthropic says this additional capacity will go toward improving the experience for paid Claude users -- Pro, Max, Team, and Enterprise subscribers -- via three key changes. Effective yesterday, Claude Code's five-hour rate limits have doubled for all paid tiers. The company has also removed the peak hours limit reduction for Pro and Max. Lastly, it has "considerably" raised the API rate limits, the volume of requests developers can make, for Claude Opus models. The announcement highlighted other similar agreements with Amazon, Google, and Microsoft, all aimed at building gigawatts of additional capacity. Anthropic also expressed interest in partnering with SpaceX to "multiple gigawatts of orbital AI compute capacity, basically data centers in space, as, according to SpaceX, "The compute required to train and operate the next generation of these systems is outpacing what terrestrial power, land, and cooling can deliver on the timelines that matter." The Colossus 1 deal means that the whole first-generation cluster, originally built to power xAI's own Grok models, is now powering one of its direct AI rivals, as the company focuses on building Colossus 2. In an X post, Musk said he gave the green light to lease Colossus 1 to Anthropic after spending time with senior members of the company to "understand what they do to ensure Claude is good for humanity." He claimed he "was impressed," saying, "No one set off my evil detector." The statement is a stark reversal of comments Musk made earlier this year about Anthropic, when he called Claude "misanthropic and evil." In the press release, Anthropic also signaled that its compute expansion strategy extends far beyond raw processing power. The company said future infrastructure deployments will increasingly target international regions, such as Europe and Asia, to meet growing enterprise demand for local data residency and regulatory compliance, particularly in sectors like healthcare, finance, and government. It also stressed that future capacity partnerships will prioritize politically stable, democratic countries with secure AI supply chains, while exploring ways to offset increases in electricity costs and reinvest in communities hosting the data centers. In addition to the compute deal announcement, Anthropic also unveiled on Wednesday a new Claude feature called 'dreaming,' designed to help its AI agents improve themselves between sessions. The feature allows Claude-powered agents to review previous work, identify recurring patterns and mistakes, and reorganize memory files that contain user preferences and contextual information, enabling the system to refine its behavior over time rather than starting each session from scratch. Follow Tom's Hardware on Google News, or add us as a preferred source, to get our latest news, analysis, & reviews in your feeds.

Anthropic Wants in on Elon Musk's Space Data Centers, Colossus Supercompute

Elon Musk's ambitions for orbiting data centers might have a major partner in Anthropic, which said today that it's interested in working with SpaceX on the technology. Anthropic brought up the topic while announcing a deal to use the Memphis Colossus 1 supercomputer from xAI, which was absorbed by SpaceX in February. "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," Anthropic said. For now, Anthropic's interest in orbiting data centers is vague. In a blog post, the company merely noted: "As part of this agreement, we have also expressed interest in partnering with SpaceX to develop multiple gigawatts of orbital AI compute capacity." The interest is notable, considering OpenAI CEO Sam Altman (and Musk nemesis) has been dismissive of orbiting data centers, an unproven technology. However, SpaceX is betting that the concept will win out in the long term, pointing to the benefits of harnessing solar power directly in Earth's orbit. Nvidia is also working on a chip for orbiting data centers, but experts say the industry will face major technical and environmental hurdles. In the meantime, the bigger, more immediate development is the Colossus 1 deal. The move is surprising considering Colossus was originally built to realize xAI's own ambitions for cutting-edge generative AI development, including taking on Microsoft. However, The Information reports that xAI has struggled to use the 500,000 Nvidia GPUs it acquired, resulting in GPU utilization of only 11%. "To be fair to xAI, everyone struggles with GPU utilization, and a researcher at a rival firm said cracking 40% was difficult for most of xAI's competitors. But a rate of 11% is appallingly low," The Information notes. It's also no secret that xAI has faced some turmoil; all of its original co-founders have now left the company, except for Musk. In March, the SpaceX CEO argued that, "xAI was not built right first time around, so [it's] being rebuilt from the foundations up. Same thing happened with Tesla." The partnership with Anthropic suggests that xAI can effectively lease GPUs, even though it risks supporting a competitor. And xAI also has additional GPUs it can rely on for its own business through the Colossus 2 supercomputer, also based in Memphis. For Anthropic, the deal adds some badly needed compute capacity. "This additional capacity will directly improve capacity for Claude Pro and Claude Max subscribers," it says. As part of the deal, Anthropic is also raising usage limits for Claude Code, a popular coding agent for developers.

Claude hitches ride on SpaceX's datacenter capacity

Anthropic is partnering with SpaceX to ease capacity constraints that have stranded Claude customers, a gesture that may soothe developer discontent about service availability and cost. Ami Vora, chief product officer at Anthropic, announced the expanded rate limits during Code for Claude, a developer event livestreamed from San Francisco. "As of today, we are increasing rate limits for developers on Claude Code and the Claude Platform," said Vora. "More specifically, we are doubling Claude Code's five-hour rate limits for Pro, Max, Team, and seat-based enterprise plans. And we're raising our API limits considerably for Claude Opus." Anthropic is also ending its peak hours limit reduction on Claude Code for Pro and Max accounts. The AI biz is able to do this, she explained, thanks to a partnership with SpaceX that expands available inference capacity. Anthropic has struck a deal to use "all the capacity of [SpaceX's] Colossus 1 data center." According to SpaceX, "Colossus 1 features over 220,000 Nvidia GPUs, including dense deployments of H100, H200, and next-generation GB200 accelerators." The deal adds more than 300 megawatts of new capacity within the month and follows similar compute arrangements with Amazon and Google/Broadcom. The company's insatiable hunger for processing power may even take it into space. Anthropic says that it "expressed interest in partnering with SpaceX to develop multiple gigawatts of orbital AI compute capacity." In recent months, Anthropic has struggled to meet unexpected demand for Claude services - its models became sufficiently capable to win over skeptical developers and usage patterns shifted as a result of the popularity of OpenClaw's long-running agents. "Year over year, API volume is up nearly 17x on the cloud platform," said Vora. "And on Claude Code, the average developer is now spending 20 hours per week running Claude." Amid this growing popularity, Anthropic has also wrestled with bugs that affected model performance. During her presentation, Vora tempered expectations by noting that no new model would be announced. Instead, she presided over a review of new and recent Claude features in an effort to frame model improvements as exponential. The salient exponent here would be two - the doubling of Claude's five-hour rate limits. Model performance, as measured by benchmarks, has been incremental. Opus 4.7 is a few percentage points better than Opus 4.6 in various measurements, not twice as capable or more. That didn't stop Vora from claiming, "even though model capabilities are improving on an exponential, most organizations are still adopting AI on a linear path." Vora's use of "exponential" may be more of a thematic framing device than a literal assertion of progress, a device to draw a contrast between Claude's capabilities and a more cautious pace of corporate AI adoption. She cast the upcoming feature review as an opportunity for customers to see where Claude development is headed, "So you can plan for it and ride the exponential with us." The remainder of the presentation consisted of a summary of recent Claude feature improvements. These include: multi-agent orchestration, outcomes, and dreaming - a capability that showed up in the recent Claude Code source leak. "With Dreaming," explained Angela Jiang, head of product for the Claude platform, "Claude is actually able to self-learn. It's able to actually inspect over its previous sessions, figure out skills that it missed, lessons it should have learned, and actually apply those directly to memory on its own." Boris Cherny, head of Claude Code, took a turn on stage to remind everyone about Routines, a way to trigger and run Claude jobs locally or on cloud servers. "Routines can be run on a schedule, they can be kicked off by webhooks, or they can even be kicked off by arbitrary API calls, you can run them locally on your machine or on remote cloud compute," he said. Cherny said, "for me personally, a lot of my code nowadays is written by routines. I'm not the one doing the prompting. I'm the one creating a routine that does the prompting." Who wouldn't want to "ride the exponential" when one's company is paying the API bill? ®

SpaceX to give Anthropic access to its massive AI supercomputer

May 6 (Reuters) - Elon Musk's SpaceX said on Wednesday it has signed a deal to give Anthropic access to Colossus 1, a massive ⁠AI supercomputer, bringing together two of the most prominent players in the artificial intelligence race. Anthropic plans to use the additional computing power to boost capacity for subscribers of its ⁠Claude Pro and Claude Max AI assistants, SpaceX said in a post on its ⁠website. Anthropic has also expressed interest in working with SpaceX to ⁠develop multiple gigawatts of orbital AI computing capacity, ⁠the rocket company added. Reporting by Aditya Soni in Bengaluru; Editing by Sahal Muhammed Our Standards: The Thomson Reuters Trust Principles., opens new tab

SpaceX reaches deal to rent data centre space to Anthropic

Anthropic has struck a deal with Elon Musk's SpaceX to access computing power from its Colossus 1 data centre, which houses more than 220,000 advanced Nvidia processors. The data centre deal comes as fast-growing Anthropic has sought out new providers as it works to boost capacity to serve its models, and has this year raised tens of billions of dollars and signed deals with Amazon and Google. Musk's AI lab xAI, which has merged with SpaceX, has rapidly built out data centres but has had lower demand for its Grok models. Anthropic said the additional capacity of 300 megawatts would improve its ability to serve its models and announced it would raise usage limits on its Claude Code tool. The SpaceX deal adds to several recent compute agreements for Anthropic, including up to 5 gigawatts with Amazon, a similar scale agreement with Google and Broadcom, $30bn in Azure capacity through Microsoft and Nvidia, and a $50bn US infrastructure investment with Fluidstack. It will also boost usage of SpaceX's AI infrastructure as the company prepares for a blockbuster listing in the coming months. Anthropic said the agreement includes a deal to explore "partnering with SpaceX to develop multiple gigawatts of orbital AI compute capacity".

Anthropic CEO says 80-fold growth in first quarter explains 'difficulties with compute'

Dario Amodei, co-founder and chief executive officer of Anthropic, at the AI Impact Summit in New Delhi, India, on Thursday, Feb. 19, 2026. Anthropic CEO Dario Amodei said his company tried to plan for 10-fold growth. But revenue and usage increased 80-fold in the first quarter on an annualized basies, which he says explains why it's been so hard to keep up with demand. "That is the reason we have had difficulties with compute," Amodei said Wednesday at his company's developer conference in San Francisco. Amodei added that the company is "working as quickly as possible to provide more" capacity and will "pass that compute on to you as soon as we can." Amodei's comments came hours after Anthropic announced a deal with Elon Musk's SpaceX to use all of the compute capacity at his company's Colossus 1 data center in Memphis, Tennessee. As part of the agreement, Anthropic will get access to more than 300 megawatts of capacity. SpaceX owns rival artificial intelligence lab xAI, now known as SpaceXAI. Anthropic's historic growth has been fueled by the popularity of its Claude AI models, and has seen a notable explosion since last year's launch of Claude Code, which has taken the world of software development by storm. The company is currently in talks with investors about raising cash at a valuation of $900 billion, as CNBC previously reported, which would make it worth more than OpenAI. "Software engineers are the ones who are fastest to adopt new technology," Amodei said on stage. "It's a foreshadowing of how things are going to work across the economy, and how the economy is going to be transformed by AI." Last month, Anthropic said demand for Claude has led to "inevitable strain on our infrastructure," which has impacted "reliability and performance" for its users, particularly during peak hours. The company has inked several compute deals in recent weeks, including a multibillion-dollar agreement with Amazon. Meanwhile, Anthropic has been navigating a contentious relationship with the U.S. government and the Pentagon, which declared the company a supply chain risk in March, blacklisting it from work with the military. As that scuffle makes its way through the legal system, Anthropic is only getting more popular. Amodei said the current level of growth is "just crazy" and "too hard to handle," telling the audience he hope for "more normal" expansion. -- CNBC's Ashley Capoot contributed to this report.

Anthropic is doubling Claude Code rate limits after deal with SpaceX - Engadget

Anthropic and SpaceX have struck a deal to allow the company behind Claude to use xAI's Colossus 1 data center. As a result, Anthropic is doubling the rate limits for paid users of Claude Code and loosening other limits, the company said. The arrangement with SpaceX allows Anthropic to use "all the compute capacity" at SpaceX's Colossus 1 data center, which will add more than 300 megawatts of new capacity "within the month." Anthropic also recently struck deals with Amazon and Google. As part of the deal, Anthropic has also "expressed interest in partnering with SpaceX to develop multiple gigawatts of orbital AI compute capacity," the companies said. SpaceX recently filed paperwork with the FCC indicating it wanted to launch a million satellites in order to create an orbital data center. Paid users of Claude Code (which includes people on Pro, Max, Team and Enterprise plans) should see immediate benefits from the deal. Anthropic is doubling the five-hour rate limits for Claude Code. It's also removing the "peak hours" restrictions for Pro and Max users, and increasing the API rate limits "considerably" for Claude Opus models. Anthropic partnering with Elon Musk's SpaceX (which now owns xAI) may seem like an unlikely move. Musk recently called Anthropic "misanthropic and evil," and has long been critical of its CEO Dario Amodei. But in a post on X he said that he was "impressed" with the Anthropic team and that Claude will "probably" be good. "We reserve the right to reclaim the compute if their AI engages in actions that harm humanity," he added in another post.

Elon Musk Teams Up With Anthropic, a Company He's Called 'Evil'

Elon Musk has called Anthropic "Misanthropic" and "evil" and has claimed the company "hates Western Civilization." Now he's calling it a partner. On Wednesday, SpaceX (which recently absorbed xAI) announced that it will enter an agreement with the makers of Claude to allow it access to the computing power available at the massive Colossus data center. According to Anthropic, the deal will allow it to crank back up some of the rate limits it has been throttling in recent weeks. In a press release, the company said it will double Claude Code's five-hour rate limits for Pro, Max, Team, and Enterprise plans and remove the peak-hours limit on Claude Code for Pro and Max accounts, which saw paying subscribers getting cut off during most work hours. The company will also bump up the rate limits for API access to Claude Opus. As for SpaceX (SpaceXAI?), the main thing that seems like it'll get out of the deal is money. As the company is reportedly looking to go public later this year, it probably needs to bolster its books a bit to boost investor interest. It also seems possible that it was just looking for someone to actually use all the compute that it built so hastily on the Colossus campus. The massive data center has 220,000 NVIDIA GPUs and 300 megawatt energy capacity, and xAI cut tons of corners to get it up and running. Colossus 2, which is supposed to reach 1 gigawatt of power, is up and running but not at maximum capacity. So perhaps Grok, the flagship AI model of the company formerly known as xAI, just isn't generating enough demand to need all that processing power to itself. Anthropic and SpaceX are odd bedfellows, given how the latter's CEO has spoken about the former. In addition to the name-calling, Musk has also accused Anthropic of stealing data at a "massive scale" to train its models. So what caused Musk to change his mind? On X, he claimed to have "spent a lot of time last week with senior members of the Anthropic team to understand what they do to ensure Claude is good for humanity," and came away "impressed." He also said, "No one set off my evil detector," so he was fine with opening the doors of Colossus 1 to Anthropic while SpaceX moves to Colossus 2. In the midst of this whole deal, Musk also announced that xAI would be dissolved and would become "SpaceXAI, the AI products from SpaceX." So mark this as the beginning of the end of SpaceX's otherwise sterling reputation. Now the company that makes a pornographic chatbot is the same one sending astronauts into space. It's a very normal time to be alive.

Anthropic doubles Claude Code limits, thanks to a deal with SpaceX

This partnership marks a surprising shift, as Elon Musk previously criticized Anthropic but recently expressed being impressed after meetings with company staff. Instead of downgrading its most affordable Claude subscription plan by dropping access to Claude Code, Anthropic has instead doubled Claude Code usage rates for subscribers, starting today. All it took was an eyebrow-raising alliance with an unlikely partner. On day one of the Code with Claude developer conference in San Francisco, Anthropic announced it had struck a deal with SpaceX that will "substantially increase" Anthropic's computing capacity. Thanks to the deal, Anthropic says it will double Claude Code five-hour usage limits for Claude Pro, Max, Team, and seat-based Enterprise plans, while also raising pay-per-token API rate limits for Claude's powerful Opus models. No mention was made of weekly Claude Code limits. I've reached out to Anthropic for more details. Anthropic also said it would lift peak-hour usage limits for Claude Pro and Max accounts, which Anthropic imposed in late March. In its deal with SpaceX, Anthropic will get access to all the compute capacity at SpaceX's Colossus 1 data center in Memphis, Tennessee, including use of more than 220,000 Nvidia GPUs. Anthropic -- who also struck computing capacity deals with Amazon, Google, and Microsoft -- said it was also interested in SpaceX's orbital AI compute capacity. The Anthropic-SpaceX partnership is surprising in that Elon Musk, who owns a commanding 42 percent stake in SpaceX, has been outspoken in his criticism of Anthropic, which he previously called "misanthropic and evil." But in an about-face social media post on Wednesday, Musk posted that he was "impressed" after recent meetings with Anthropic staffers. "No one set off my evil detector," he wrote. Anthropic, meanwhile, has been straining to meet capacity demands, with the company recently mulling the idea of dropping Claude Code access from its $20-a-month Claude Pro plan. That hasn't actually happened yet, but an Anthropic exec recently admitted that the company's consumer plans weren't built for token-hungry agentic tools like Claude Code and Cowork. Anthropic's deal with SpaceX should give it much-needed breathing room as it works to bridge the gap between what its Claude Pro and Max plans promise and what the company's computing capacity actually allows. But whether Anthropic's SpaceX alliance will be a long-term solution to its capacity woes -- not to mention the ever-shifting usage limits Pro and Max users must contend with -- remains to be seen.

How Elon grew to love Anthropic

Why it matters: Musk went from calling Anthropic "evil" to doing business with it in three months, showing how quickly competition can give way to strategic necessity in the AI race. The big picture: The deal helps Anthropic address one of its most pressing problems -- a severe compute deficit. The company saw "80x growth per year in revenue and usage" for the first quarter of 2026, CEO Dario Amodei said at a developer conference Wednesday, when it only planned for 10x. * That demand spike gave the AI lab "difficulties with compute," Amodei added, referencing recent usage limits that have frustrated customers. * Enter SpaceX, which will provide the AI lab with the entire capacity of its Colossus 1 data center, amounting to more than 300 megawatts of new capacity (over 220,000 Nvidia GPUs) within the month. * xAI, Musk's AI lab that SpaceX acquired, will continue to run off Colossus 2, a separate supercomputer. * "As part of this agreement, Anthropic also expressed interest in partnering to develop multiple gigawatts of orbital AI compute capacity," SpaceX said in a blog post. The intrigue: The deal comes as Musk is embroiled in a lawsuit against OpenAI, the AI lab he co-founded that also happens to be Anthropic's biggest competitor. * "Elon's enemy is Sam. Dario's enemy is Sam. Enemy of my enemy is a compute partner," Ben Pouladian, who does tech market research, wrote on X. * Musk publicly attacked Anthropic on X in February, calling it "misanthropic" in response to the AI lab announcing its $380 billion post-money valuation. (Anthropic is now expected to be valued closer to $900 billion.) * Now, Musk says he "was impressed" after meeting with senior Anthropic leaders last week. Follow the money: It's not just about personalities or competition. The deal makes financial sense for both parties, especially as Musk's xAI has a very different demand curve than Anthropic. * Musk has a history of over-investing in infrastructure relative to product demand, PitchBook's Harrison Rolfes tells Axios via email. (In 2024, OpenAI scooped up capacity originally intended for Musk.) * "xAI's Colossus 1 ended up with capacity that Grok's user base never grew into," Rolfes said. * By leasing that capacity to Anthropic, Musk turns an idle, expensive asset into a high-margin revenue stream for SpaceX, just in time for its June S-1 filing. That will allow him to avoid a multi-billion dollar write-down on unused chip capacity before the company is expected to go public. * Instead, SpaceX can go public with Anthropic as a customer. Yes, but: Musk wouldn't have lent this spare capacity to a competing AI lab if he had the same demand problem Amodei describes having at Anthropic. * The company is only utilizing 11% of the potential of its massive chips stash, per The Information, though it's unclear how much of that is driven by lack of demand, low utilization or a combination. The bottom line: Anthropic has the cash Musk needs to shore up his company's balance sheet before it goes public, and Musk has the compute Anthropic needs to meet user demand and continue its exponential revenue growth.

Claude just took over the data center Grok needed most

Anthropic's SpaceX deal exposes the brutal compute math behind Musk's fight to catch AI rivals. SpaceX is leasing the full capacity of its Colossus 1 data center in Memphis, Tennessee, to Anthropic, giving the Claude maker a sudden infrastructure windfall while xAI's Grok fights for ground in the AI race. The early May 2026 agreement, reported by the Wall Street Journal, gives Anthropic access to more than 220,000 Nvidia GPUs and over 300 megawatts of processing power. That's the kind of xAI compute edge Musk's chatbot business would normally want nearby. Recommended Videos Now Claude gets the benefit. For Anthropic, the lease helps ease pressure on Claude Pro and Claude Max demand. For SpaceX, it turns unused data center capacity into revenue ahead of an anticipated IPO. Claude gets the fast lane The sharpest detail is timing. Anthropic isn't waiting for late-2026 capacity from Amazon, Google, and other partners to fully come online. It gets a live Memphis cluster now, just as AI labs are competing on power, GPUs, and model quality at the same time. That matters for Claude's paid tiers, which need reliable infrastructure as demand grows. The added GPU supply can support heavier usage, faster responses, and future model work, though exact user-facing changes weren't detailed in the source material. The scale makes the optics harder to ignore. More than 220,000 Nvidia GPUs and 300-plus megawatts look less like spare capacity and more like ammunition in the model race. Musk's business case wins The deal lands with extra irony because Musk had recently described Anthropic in hostile terms, then found a reason to work with it anyway. His later comment that no one at Anthropic triggered his "evil detector" makes the turn feel more transactional than friendly. The business case is clear. SpaceX gets a way to monetize a major asset before an anticipated IPO, while Anthropic gets a shortcut around a near-term capacity crunch. Grok can still improve, but xAI now looks like it's fighting from behind while Claude draws power from inside Musk's orbit. In AI, data centers can matter as much as demos. What Claude users should watch The next test is whether Anthropic turns the Colossus 1 lease into visible improvements before its larger cloud partnerships fully ramp up. Claude users should watch for steadier access, faster responses, fewer plan constraints, or new features tied to heavier workloads. For xAI, the takeaway is harsher. Grok's next challenge is infrastructure, especially when a rival can rent power from inside Musk's own corporate orbit.

Anthropic grew 80-fold in a single quarter. Now it's renting Elon Musk's data center to cope | Fortune

Anthropic CEO Dario Amodei said the AI company had planned for 10x growth, but instead, its revenue and usage grew 80-fold in the first quarter on an annualized basis, a surge he called "just crazy" and "too hard to handle." The company is growing so fast that its infrastructure has struggled to keep up, forcing it into an unlikely partnership with an industry rival: Elon Musk. "That is the reason we have had difficulties with compute," Amodei said during Anthropic's developer conference in San Francisco Wednesday, CNBC reported. Anthropic's annualized revenue has climbed to $30 billion, a three-fold increase compared to last year. Much of this increase has been fueled by a wave of corporate customers including Uber and Netflix which are increasingly using Claude Code. Customers prefer Claude Code in some cases over competitors like Cursor because of its agentic abilities. Companies have also leveraged Claude's API to embed the large language model into everything from customer service platforms to task automation. "Software engineers are the ones who are fastest to adopt new technology," Amodei said at the developer's conference. "It's a foreshadowing of how things are going to work across the economy, and how the economy is going to be transformed by AI." Yet, in recent months, some Claude Code users have complained about increasingly strict usage limits that have hurt their experience and the model's performance. Anthropic admitted in a postmortem from late April that three bugs had affected Claude Code since March 4. The company's internal tests hadn't caught them, which is what led to several weeks of degraded performance. Yet, when users first flagged the issues in early March, the company said it could not reproduce them and didn't make an effort to fix the problem. On social media, some users over the past several weeks have said they were cancelling their Claude subscriptions because of performance issues. "Whatever happened in the last 1-2 months is a significant regression," wrote one user in a post on X. Separately, Anthropic's skyrocketing growth has turned into an infrastructure emergency, and as a result the company struck an agreement with an unlikely ally. Anthropic announced earlier this week it would rent the entire compute capacity of Colossus 1, the Memphis data center built by Musk's xAI, would allow for higher usage limits for Claude Code across all paid plans and the Claude API. The company is doubling Claude Code's five-hour rate limits for its Pro, Max, Team, and seat-based Enterprise plans. It's also doing away with peak hour limit reductions on Pro and Max accounts, according to the announcement. The deal gives Anthropic access to 220,000 NVIDIA GPUs and 300 megawatts of new compute within the month, but it is now also at least partly reliant on Musk, a competitor in the AI race. One analyst told Fortune the deal could bring in between $3 billion and $4 billion in annual revenue for SpaceX. Anthropic's deal with SpaceXAI comes even as it has struck several deals previously to expand its compute. In early April, Anthropic signed a joint deal with Google and Broadcom that will give it access to five gigawatts of compute capacity. Less than a month later, it struck a deal with Amazon Web Services to add up to another five gigawatts of compute in exchange for an agreement to spend more than $100 billion on AWS services over the next decade. The agreement with Anthropic is good news for SpaceXAI, which has aimed to diversify its business since acquiring xAI in February. On Wednesday, Musk said in a post on X that xAI will no longer exist as a separate company, and will simply serve as the AI arm of the newly named SpaceXAI. The company is preparing for an IPO later this year that is aiming to raise between $1.75 and $2 trillion. And yet, Anthropic is turning to SpaceXAI despite the previous attacks by Musk in which he has labeled the company "misanthropic and evil." In SpaceXAI's announcement of the deal with Anthropic, the company said Anthropic expressed interest in partnering with it to develop orbital data centers, which Musk has argued could provide boundless low-cost compute capacity, despite the engineering challenges.

Elon Musk's SpaceX Will Help Power Anthropic's Claude in Surprise AI Deal - Decrypt

Elon Musk's SpaceX -- which merged with xAI earlier this year -- is teaming up with Anthropic to help power Claude, creating an unusual partnership between companies that have found themselves on opposite sides of President Donald Trump's administration. The companies announced Wednesday that Anthropic will gain access to Colossus 1, xAI's massive AI supercomputer cluster built to train and run advanced AI models. Anthropic said the agreement will give it access to more than 300 megawatts of additional compute capacity and help improve service for Claude Pro and Claude Max subscribers. "In the next few days, we'll be ramping up Claude inference on Colossus. Grateful to be partnering with SpaceX here," Anthropic co-founder Tom Brown wrote on X. "We are going to need to move a lot of atoms in order to keep up with AI demand, and there's nobody better at quickly moving atoms (on or off planet Earth)." In a follow-up post on X, Musk said conversations with senior Anthropic staff helped convince him the company was approaching AI development responsibly. "Everyone I met was highly competent and cared a great deal about doing the right thing," Musk wrote. "No one set off my evil detector. So long as they engage in critical self-examination, Claude will probably be good." Musk added that "SpaceXAI" had already moved training to Colossus 2, a much larger next-generation AI supercomputer cluster designed to surpass Colossus 1's roughly 220,000 Nvidia GPUs and support future Grok models. The partnership comes as Musk and Anthropic CEO Dario Amodei have increasingly represented different camps inside the AI industry. Musk has aligned himself closely with Trump and the U.S. Departments of Justice and Defense. At the same time, Anthropic has positioned itself as one of the industry's strongest advocates for responsible AI safety standards. That stance recently put the company in conflict with the Trump administration and the Pentagon after Anthropic refused demands to allow unrestricted military use of Claude. The dispute centered on safeguards blocking the model from being used for mass domestic surveillance or fully autonomous weapons. Trump later ordered federal agencies to phase out Anthropic's technology, while Pentagon officials argued military contractors must permit "any lawful use" of AI systems used by the government. The agreement underscores how the race for computing power is reshaping alliances across Silicon Valley. In February, Elon Musk folded xAI into SpaceX, arguing that electricity demand and cooling requirements are limiting the growth of Earth-based AI data centers. Musk clarified on X on Wednesday that the xAI entity will be dissolved, and that part of the business will be known as "SpaceXAI" going forward. Also in March, Musk accused Anthropic of being "misanthropic" after the Claude developer raised $30 billion in funding at a $380 billion post-money valuation. Despite his previous harsh words, Anthropic said the SpaceX deal adds to a growing list of infrastructure partnerships that already includes Amazon, Google, Broadcom, Microsoft, and Nvidia. "As part of this agreement, we have also expressed interest in partnering with SpaceX to develop multiple gigawatts of orbital AI compute capacity," Anthropic said in a statement. While orbital data centers remain experimental and face major engineering hurdles, SpaceX said terrestrial power, cooling infrastructure, and available land may not scale fast enough for future AI systems, driving interest in space-based compute as a potential source of larger and more sustainable energy supplies. "If engineering challenges can be overcome, space-based compute offers near-limitless sustainable power with less impact on Earth," the company said.

Musk called Anthropic 'evil' -- now his data centres are helping its AI

Musk's SpaceX has leased its Colossus 1 supercomputer to Anthropic, giving Claude's maker a massive compute boost despite a previously bitter rivalry. When Anthropic's chief product officer Ami Vora took the stage at the company's Code with Claude developer conference in San Francisco last week, those present likely expected updates on new models. Instead, Vora announced that Anthropic had signed a deal with SpaceX to take full control of the Colossus 1 data centre in Memphis, in a pairing that would have seemed unthinkable just a few months ago. The deal gives Anthropic access to more than "more than 300 megawatts of new capacity [and] over 220,000 NVIDIA GPUs within the month," according to a subsequent Anthropic statement, and will directly benefit subscribers to its Claude Pro and Claude Max plans. A Musk-Anthropic union is as unlikely as they come. The man who called Anthropic "evil" and a company that "hates Western civilisation" a mere months ago now controls the infrastructure powering the expansion of Claude and enabling the rollout of extended programs for its paying users. Anthropic was founded in 2021 by Dario Amodei, Daniela Amodei and a cohort of researchers who left OpenAI over concerns that safety was not being taken seriously enough. The company's entire brand identity is built on "responsible AI," and its models are trained with Constitutional AI, a framework with baked-in ethical constraints that Claude's developers say makes it more likely than its competitors to decline requests, express uncertainty about sensitive topics or push back on prompts it deems harmful. Grok, on the other hand, was launched during Musk's peak involvement with the Trump administration in 2025, when he would take to X daily to attack mainstream media for ideological gatekeeping and back far-right European parties, including the Alternative for Germany. Its branding was explicitly anti-woke. Anthropic has continuously refused to strip safety guardrails from Claude for use in autonomous weapons systems, including those being used in the ongoing Iran war. Meanwhile, Musk has backed hawkish foreign policy positions and, along with Google and OpenAI, signed defence contracts with the Pentagon on terms Anthropic refused in February after previously signing deals in July 2025 -- leading the Pentagon to since designate the company a supply chain risk and bar it from military work. Musk's xAI generated $107 million (€91m) in revenue for the quarter ending in September 2025, while posting a net loss of $1.46 billion (€1.24bn) in the same period. Anthropic, meanwhile, has reached an annualised revenue run rate of around $30 billion (€25.5bn), according to analyst estimates. The "anti-woke" product positioning that was supposed to be a competitive differentiator for Grok turned out not to translate into enterprise revenue. Grok lacked the technology that allows AI models to reach beyond chat windows and control operations on a computer. At the same time, Anthropic's Claude Cowork and OpenAI's Codex ushered in a whole new way of leveraging AI models. The success of their launches far surpassed Anthropic's ability to keep up with compute and highlighted just how much Anthropic underestimated its own success -- hence them reaching out to SpaceXAI for additional data support. Grok, on the other hand, was built around the chatbot paradigm and its tight integration with X -- which initially might have looked like a distribution advantage -- became an eventual growth trap, as it oriented the product around social media interactions rather than task completion or workflow optimisation, or services that users actually pay for. The ultimate hit that collapsed Grok's brand came in early 2026 when the chatbot generated at least 1.8 million sexualised depictions of women over nine days, along with imagery of minors, triggering investigations by regulators across Europe, Asia and the United States. "This is not spicy. This is illegal. This is appalling. This has no place in Europe," EU digital affairs spokesman Thomas Regnier said at the time. Since the deal was announced, Musk said he is comfortable leasing Colossus 1 to Anthropic partly because SpaceXAI had already moved its own training to Colossus 2. Musk added a notable caveat on X, writing that SpaceXAI reserves the "right to reclaim the compute" if Anthropic's AI "engages in actions that harm humanity." The condition did not appear in the press release, and it has not been confirmed whether it features in the actual contract. There is no stated threshold for what constitutes "harm to humanity," meaning the judgment could rest with Musk alone. It could also be a last-ditch attempt by Musk to maintain some distance from the fact that he is now directly powering the expansion of his woke competitor, while his own AI program quietly falters.

Musk's SpaceX strikes data center deal with Anthropic

San Francisco (United States) (AFP) - AI startup Anthropic announced Wednesday it has agreed to a major computing partnership with Elon Musk's SpaceX, securing access to a vast data center as the Claude maker scrambles to keep pace with surging demand for its AI services. Under the deal, Anthropic will use all of the compute capacity at SpaceX's Colossus 1 data center in Memphis, Tennessee -- a facility originally built to power Musk's rival AI venture, xAI. The agreement gives Anthropic access to more than 300 megawatts of capacity, backed by over 220,000 Nvidia AI chips, within one month. The company said the additional capacity would directly benefit subscribers to its Claude Pro and Claude Max plans. Anthropic also announced it was immediately letting users do more with its technology. The company said it was doubling the amount of Claude Code -- an AI-powered coding assistant that can write, edit, and debug software -- that paying subscribers can use in a five-hour window and eliminating restrictions that had previously cut access during busy periods. The SpaceX deal marks a surprising partnership between two companies whose leaders have been publicly at odds. Musk wrote in February that Anthropic "hates Western Civilization" and questioned whether there was a "more hypocritical company than Anthropic." Anthropic CEO Dario Amodei has rankled Musk and other Silicon Valley insiders with his public warnings about the dangers of AI. Amodei has also clashed with the Trump administration after the Pentagon designated Anthropic a supply chain risk earlier this year, a move Anthropic said amounted to unconstitutional retaliation for the company's advocacy on AI safety. But on Wednesday Musk changed his tone, writing on X that he had spent time with senior Anthropic staff over the past week and was "impressed." "Everyone I met was highly competent and cared a great deal about doing the right thing," he wrote. In a separate post, Musk said he was "dissolving" xAI as a standalone company. "It will just be SpaceXAI, the AI products from SpaceX," he added, without elaborating. SpaceX merged with xAI earlier this year in a deal valuing the two companies at $1.25 trillion. The company is widely expected to pursue an IPO this year that could be among the largest in corporate history. The Colossus facility in Memphis has been a source of controversy. xAI installed dozens of natural gas-burning turbines to power the site, claiming no federal permit was required because they were only for temporary use -- a move that drew persistent protests from civil rights groups who said it worsened air pollution in the Memphis area. The SpaceX pact is the latest in a string of major compute agreements Anthropic has announced in recent months as the company looks to secure the computing power needed to meet its growing needs. These include megadeals with Amazon, Google and Broadcom, Microsoft and Nvidia, and an infrastructure investment with Fluidstack. AI battle The announcement comes as Anthropic and OpenAI -- crosstown rivals in San Francisco -- are locked in a direct battle to equip businesses with AI agents: semi-autonomous assistants capable of writing code, analyzing large volumes of documents, or processing medical records, whose adoption is accelerating rapidly. On Tuesday, Anthropic unveiled 10 AI agents tailored specifically for banks, insurers, and asset managers -- tools capable of drafting sales presentations, conducting regulatory checks, and analyzing financial statements. OpenAI, meanwhile, announced a partnership Tuesday with global auditing giant PwC to support its financial operations. But the race to deploy AI agents is running headlong into a scramble for the chips and energy needed to power them. Data center construction in the United States, despite moving at an accelerated pace, has struggled to keep up. And the energy-hungry projects, blamed for driving up household electricity bills, are drawing growing opposition from American citizens -- an issue that could weigh on November's midterm elections.

Anthropic and SpaceX announce major partnership as AI arms races continues

Elon Musk's SpaceX will give Anthropic access to its massive Colossus 1 artificial intelligence data center, bringing together two of the most prominent players in the artificial intelligence race. Under the deal announced on Wednesday, Anthropic will use the full computing power of SpaceXAI's Memphis, Tennessee facility to boost capacity for its Claude Pro and Claude Max AI assistants and raise usage limits for subscribers. The deal gives Musk's IPO-bound SpaceX a marquee customer as it looks to sell investors on its AI ambitions while helping Anthropic ease capacity constraints following surging demand for products such as its AI coding tool, Claude Code. Colossus 1 is one of the world's largest AI data centers, housing more than 220,000 Nvidia processors, including H100, H200 and next-generation GB200 accelerators. Anthropic has also expressed interest in working with SpaceX to develop multiple gigawatts of space-based data centers -- one of Musk's key goals and a major driver behind the SpaceX's initial public offering as the endeavor is expected to be highly capital intensive. The announcements were made as Anthropic held a developer day in San Francisco where it touted a new feature for its Claude AI, which it calls "dreaming." Available as a research preview, "dreaming" comes with its software for managing agents, or AI programs that perform tasks with little human involvement. The feature's goal is self-improvement. It can review agents' work in between sessions, unearth patterns, and update files that store user preferences and other context, Anthropic said. The new feature is part of Anthropic's efforts to win business customers, on the heels of an uptick in popularity for its AI-powered coding agent. On Tuesday, the startup unveiled 10 financially focused AI agents at an event in New York, in which it said the tech sector represented its largest source of enterprise revenue, followed by financial institutions. Moves by the Google and Amazon.com-backed startup have hammered software-as-a-service (SaaS) stocks as the market expects AI to disrupt legacy businesses. Anthropic announced wider availability for other features as well, such as one for its AI agent to break down and delegate tasks to other, specialist agents.

Anthropic will get compute capacity from Elon Musk's SpaceX

Why it matters: Anthropic has been struggling to meet the needs of developers which has led to aggressive rate caps and a shift to usage-based pricing. Driving the news: In addition to the partnership with SpaceX, Anthropic said it will lift the five-hour rate caps for most paid subscribers including those on its Pro, Max, Team and Enterprise plans. * "We're partnering with SpaceX to use all the capacity of their Colossus One data center," Anthropic head of product Ami Vora said, speaking at the company's developer conference in San Francisco. * In a statement, Anthropic said the deal gives it "access to more than 300 megawatts of new capacity (over 220,000 Nvidia GPUs) within the month." Anthropic also announced changes that could address recent complaints about usage limits, including: * Removing peak hours limits reduction on Claude Code for Pro and Max users. * Raising API rate limits for Opus models. Zoom out: The move comes as SpaceX is working to become an AI powerhouse before an expected IPO this fall, which is slated to be the largest in corporate history. * SpaceX acquired xAI in January and has a deal with Cursor that it says gives it the option to buy the coding startup for $60 billion. What they're saying: Anthropic says a recent deal with Amazon will also help it expand geographically, which is key for customers in regulated industries who often need to store data within a specific country or region.

Anthropic joins forces with SpaceX for Colossus capacity

Anthropic has 'expressed interest' to co-develop data centres in space, said SpaceX. Anthropic has agreed to purchase compute capacity from Space X's AI supercomputer Colossus 1, marking the latest in the multibillion-dollar industrial tie-up between AI companies and infrastructure providers. Terms of the deal between the two companies remain undisclosed. This, as well as Anthropic's other recent compute deals, including with Amazon and Google, is allowing the company to increase usage limits for Claude Code and Claude API. The company announced yesterday (6 May) that it is doubling Claude Code's five-hour rate limits for Pro, Max, Team and seat-based Enterprise plans; removing the peak hours limit reduction on Claude Code for Pro and Max users; and raising API rate limits "considerably" for Claude Opus models. Colossus 1 features more than 220,000 Nvidia GPUs, including dense deployments of H100 and H200 chips, and the newer GB200 accelerators. The Tennessee-based data centre, considered to be one of the world's largest, came under regulatory scrutiny earlier this year after it was ruled that the xAI - now under SpaceX - acted illegally by using methane gas turbines to power Colossus 1 and 2. Elon Musk's SpaceX purchased his other company xAI in February to further his goals of creating space-based data centres. The combined entity is called SpaceXAI. Musk, at the time, said that the merger would allow for data centres to be transported to space in order to harness near-constant solar energy from the Sun. SpaceX's Starship rockets are expected to begin delivering its next-generation satellites into orbit this year, according his comments. As part of its agreement with SpaceX, Anthropic has also "expressed interest" in partnering to develop multiple gigawatts of orbital AI compute capacity, the two jointly said. Both companies are preparing to file historic initial public offerings this year, with Anthropic hitting a $1.2trn implied valuation and SpaceX targeting $1.75trn. "Grateful to be partnering with SpaceX here. We are going to need to move a lot of atoms in order to keep up with AI demand, and there's nobody better at quickly moving atoms (on or off planet Earth)," said Anthropic co-founder and chief compute officer Tom Brown in a post on X. Musk, meanwhile, said members at Anthropic were "highly competent and cared a great deal about doing the right thing." These comments from Musk come just months after he called Claude "misanthropic and evil" for allegedly "hat[ing]" people of certain races, as well as "heterosexuals and men". Earlier this week, Anthropic partnered with investment giants Blackstone, Hellman & Friedman, and Goldman Sachs to form a new AI services company, further cementing itself into the enterprise market as AI inevitably becomes a core productivity tool. In April, SpaceX said that it had an agreement in place to acquire AI start-up Cursor for $60bn. Cursor plans to leverage the Colossus infrastructure to scale up the intelligence of its models. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

Anthropic to use SpaceX's Colossus 1 supercomputer for inference - SiliconANGLE

Anthropic to use SpaceX's Colossus 1 supercomputer for inference Anthropic PBC today announced that it will use SpaceX Corp.'s Colossus 1 supercomputer to power its Claude chatbot. The system was originally built in 2024 by xAI Holdings Corp., an artificial intelligence venture that Elon Musk launched the year prior. SpaceX obtained Colossus 1 when it acquired xAI earlier this year. The supercomputer, which is hosted in a data center near Memphis, contains more than 220,000 Nvidia Corp. graphics cards. Anthropic expects those chips to provide 300 megawatts of computing capacity for Claude. The company will use that processing power to process requests from users subscribed to the chatbot's Pro and Max editions. Anthropic is also raising the usage limits of Claude Code and Claude's application programming interface. The former product's request volume cap, which resets every five hours, has been doubled. API users, in turn, can now process significantly more input and output tokens per minute. Anthropic may expand its use of SpaceX infrastructure over time. The latter company stated today that Anthropic has "expressed interest in partnering to develop multiple gigawatts of orbital AI compute capacity." SpaceX revealed its intention to deploy data centers in space at the end of January. According to the company, the plan is to launch satellites that can each carry 100 kilowatts worth of AI hardware. Several thousand such satellites would be necessary to provide the multi-gigawatt capacity pool in which Anthropic is reportedly interested. The satellites will generate the electricity necessary to power their onboard chips using a large solar panel array. Additionally, each system is expected to feature a 1,079-square-foot radiator. The radiator will emit the heat generated by the onboard chips into space in the form of infrared radiation. SpaceX plans to build the AI chips that will power the satellites at a new in-house fab campus in Texas. According to a filing published this week, the company plans to spend at least $55 billion on the facility. SpaceX estimates that the project budget could more than double over time. Anthropic, for its part, also plans to source computing capacity from other partners as well. Amazon.com Inc. will provide the AI developer with nearly 1 gigawatts of processing power by year's end as part of a partnership announced last month. The collaboration will also see the retail and cloud giant invest as much as $25 billion to Anthropic. In the long term, Amazon will provide the AI developer with up to 4 gigawatts of with additional infrastructure. Anthropic recently inked a similarly sized AI hardware deal with Broadcom Inc. and Google LLC. The two companies will start bringing the computing capacity online in 2027. SpaceX, for its part, is currently building out a second supercomputer located not far from Colossus 1. Colossus 2, as the system is called, is expected to provide 2 gigawatts of computing capacity. It will feature 550,000 B200 chips at full capacity.

Elon Musk called Anthropic 'evil' 3 months ago. Now he's taking $4 billion to become its landlord | Fortune

Three months ago, Elon Musk wrote on X that Anthropic was "evil," "misanthropic," and that the AI lab hated Western civilization. On Wednesday, he leased Anthropic one of his most valuable assets: the world's biggest supercomputer. But Anthropic-lovers shouldn't bask too long in Musk's newfound praise (even if he did decide that "nobody set off my evil detector" ). The deal has little to do with them as a company, analysts told Fortune, and everything to do with an upcoming prospectus. SpaceX is expected to begin its public roadshow next month, with a confidential S-1 filed April 1 targeting a valuation between $1.75 trillion and $2 trillion. Wednesday's announcement -- paired with Musk's dissolution of his AI company xAI into SpaceX (to make SpaceXAi) -- gives the IPO something it didn't have a week ago: a marquee AI customer for a credible cloud-infrastructure business. According to estimates from Antoine Chkaiban, an analyst at New Street Research, the Anthropic deal will generate $3 billion to $4 billion in annual revenue for SpaceX, with more than $2.5 billion in cash profit. The margins seem extreme, but that's because the data center is already built: the fixed capital expense is sunk, and the only meaningful operating cost is electricity plus the relatively minimal costs of staffing the place. "He's not going to want multiple billions of dollars of GPUs sitting idle," Chkaiban told Fortune. "It's a very good business decision." And, it seems, the start of Elon Musk's transition from seeking to be a frontrunner in the model race, to being the landlord of AI. "He who controls the data center, really does control the application of artificial intelligence right now," Andrew Moore, the former head of Google Cloud AI and now CEO of defense AI startup Lovelace AI, told Fortune. "So, yeah, I think both sides of this wedding of convenience will be a little stressed out by it." The hyperscaler pivot Colossus 1 contains roughly 220,000 Nvidia GPUs and was built in 2024 to train Grok, Musk's AI assistant. But Grok hasn't filled it. Chkaiban estimates Grok generates less than $1 billion in annualized revenue; Anthropic is on track for more than $40 billion. The disparity is the deal. Musk has too much compute and Grok-despite endless "ask Grok" inquiries on X-can't fill it; Anthropic has too many users and not enough compute. Leasing Colossus 1 to Anthropic funds the gap. But it also lets Musk skip a step. The biggest cost line for any of the frontier AI labs is the 30%-plus margin paid to AWS, Microsoft Azure, or Google Cloud for compute. SpaceX captures those margins of the hyperscalers instead of paying it in stressful debt deals, like the AI labs. That framing -- SpaceX as the fourth hyperscaler -- is what Musk needs investors to accept before pricing, analysts told Fortune. A SpaceX that can compete with AWS is worth a hyperscaler multiple, not a rocket company multiple. These days, Alphabet, Microsoft, and Amazon trade at roughly twice the forward earnings multiple of Boeing and Lockheed Martin. But Moore was skeptical that the pivot is easy. Big enterprise customers like governments, or Fortune 500 companies pick where to store data centers mostly based on location; if the cost of energy is cheap, if they have failsafes if something goes wrong. Building one massive data center in Memphis doesn't replicate AWS's global and legal footprint. "The battle is not just who's got the most compute servers," he said. "I would never bet against Elon doing something amazing," Moore added, "but he's got his work cut out to really take on AWS." The kill-switch clause Whether or not Musk wins that battle, he already has something other compute providers don't. In a reply on X, he wrote that SpaceX "reserves the right to reclaim the compute" if Anthropic's AI "engages in actions that harm humanity." The clause was not in the formal press release, and it's unclear whether it appears in the contract. But if enforceable, it gives Musk a powerful leash on one of the three leading AI labs in existence, while he sues OpenAI's leadership in federal court. That's a lot of power Musk has now that he didn't two weeks ago. And it would matter less if Musk didn't change his mind so much on AI. Moore, who was dean of computer science at Carnegie Mellon during Musk's loudest existential-risk phase, remembers him as "one of the loud voices saying that artificial intelligence is an existential threat for the human race." Now he says AI will usher in a world of abundance. Anthropic almost certainly has fallback plans. Frontier AI labs are not in the habit of single-sourcing the data center their entire product depends on, and Moore said the company will be working aggressively on compute efficiency in the background. "They will have contingency plans in three months, six months, twelve months," he said. Still, neither side gets to walk away clean. Gene Munster, managing partner at Deepwater Asset Management, put the odds the deal still exists in two years at 80%. The other 20% is a bet on Musk himself. "What makes it unique is Elon's history," Munster said. "He can change his mind. It's less about the actual provision; it's more just about who's running the provision." The deal's odds aren't in question. Even if Munster is right and the contract holds for two years, one of three frontier AI labs in the world now operates on infrastructure controlled by the CEO of a competitor. "The stakes are enormous," Moore said. "Everyone is trying to get through the next six months. They'll do whatever it takes."

Anthropic taps SpaceX supercomputer to double Claude Code's 5-hour limit

TL;DR: Anthropic has partnered with SpaceX to access the Colossus 1 AI supercomputer, gaining over 300 megawatts of compute power with 220,000+ NVIDIA GPUs. This boost will ease Claude's usage limits, enhance availability for subscribers, and enable significant API expansion amid rising AI infrastructure competition. Anthropic is dramatically increasing Claude's usage limits after striking a massive compute partnership with SpaceX, highlighting how the AI arms race is quickly becoming a battle over infrastructure. The company announced it has secured access to SpaceX's Colossus 1 AI supercomputer, gaining more than 300 megawatts of new compute capacity powered by over 220,000 NVIDIA GPUs. Anthropic says the added power will directly improve availability for Claude Pro and Claude Max subscribers, while also allowing the company to raise API and usage limits for developers substantially. This is a major moment in the broader AI industry narrative. Companies like Anthropic, OpenAI, xAI, and Google are no longer just competing on models; they are competing on raw compute access. Anthropic has faced mounting criticism in recent months over aggressive Claude rate limits, especially surrounding Claude Code and Opus usage. The SpaceX deal appears designed to directly address those bottlenecks while positioning Anthropic to scale more aggressively against rivals. Reports also suggest Anthropic is exploring future orbital AI data centers with SpaceX, an idea that sounds extreme today but aligns with Elon Musk's long-term push toward space-based infrastructure. The timing is notable. AI demand is exploding across enterprise, coding, and finance sectors, and infrastructure has become one of the biggest constraints on growth. Anthropic is now effectively tying its future capacity expansion to one of the largest AI compute networks in the world, signaling that the next phase of AI competition may be won less by model quality alone and more by whoever can secure the most power, chips, and data centers.

Musk and Amodei Are Burying the Hatchet in Sam Altman's Back

Nobody quite saw last week's deal between Anthropic and xAI coming, but as soon as it was announced, it was suddenly overdetermined. Of course Anthropic needed access to xAI's enormous gas-turbine-powered Colossus data center, given the rapid growth of token-hungry tools like Claude Code. Obviously the relatively uncompetitive and unpopular offerings from xAI made turning the company into a neo-cloud provider a smart choice for Elon Musk, whose main advantage in the AI race is his ability to attract capital and apply it to the increasingly physical problems of scaling -- acquiring hardware, building data centers, getting them switched on -- but who had nowhere to direct all those Nvidia GPUs and needed a new AI story for SpaceXAI, pre-IPO. Dario Amodei, the theory-minded essayist and Anthropic CEO with comparatively less experience in ignoring local regulations to quickly build enormous facilities, needed to stop his product from breaking down on a weekly basis as it onboards new corporate customers. It just makes sense. This is all true, but again, an Anthropic-xAI collab wasn't the sort of thing people were talking about two weeks ago and for plenty of good reasons. xAI might not be a clear frontier lab at the moment, but Musk still has ambitions for it to become a major player and ultimately beat Anthropic. While Anthropic will be using xAI's first major data-center project (Colossus) to meet its inference needs -- that is, to serve its models, not to train them -- xAI will still be using the much larger Colossus 2 for its own purposes. Anthropic, as compute-constrained as it may be, wasn't without options but surprisingly chose a deal with a company whose CEO Amodei has specifically identified as someone with whom he has deep ideological differences regarding both AI development and politics in general. Anthropic is also seeking access to the data-center project most identified with pollution and disregard for the surrounding community at a moment of mounting backlash. Meanwhile, Musk has been pretty clear about his feelings toward Anthropic for a long time and especially recently: Then, last week, Musk wrote, "I spent a lot of time last week with senior members of the Anthropic team to understand what they do to ensure Claude is good for humanity and was impressed." Sure. Both of these men, in their own ways, claim to be building an epochal technology with a nonzero risk of destroying the world, and each has implied that he's the one best equipped to avoid such an outcome. One way to read their collaboration is as an admission that they're not quite as concerned as they say they are about things going Very Wrong with AI. One could also imagine our modern AI CEOs as so aligned in a general post-human mission that they're willing to do anything to bring about the God of Artificial Superintelligence. As much as their mutual dislike and misaligned business interests make this a strange deal, though, toxic interpersonal dynamics offer the clearest and best explanation for why it happened: As much as they don't trust one another, they trust OpenAI's Sam Altman less. Amodei left OpenAI to start Anthropic over differences with Altman. ("The problem with OpenAI is Sam himself," Amodei said in 2021.) Today, despite Anthropic's momentum, OpenAI remains competitive in the two ways that matter most: It has more users than anyone else through ChatGPT and has the other most credible coding product in Codex. It's also the company most responsible for Anthropic's inability to access more compute (Google is an established cloud company that designs its own AI chips). Anthropic knows that its current advantages over OpenAI are thin and potentially fleeting -- the mood and comparative rankings in this are prone to rapid change -- and Amodei, perhaps perceiving Musk as a less credible threat to his business than Altman in the medium term, could use some help. As for Musk, the most useful background for this deal is probably his ongoing lawsuit against Sam Altman and Greg Brockman, with whom he co-founded OpenAI a decade ago. Now, Musk claims to feel like a "fool" to have ever invested in Altman's "long con" to turn OpenAI into a for-profit company and that its leaders are currently "betraying their promise" and that misaligned AI "could kill us all." However one assesses Elon Musk's level of concern for human beings who are not Elon Musk, the outline of the story is enough to justify virtually any deal that might get in Altman's way: Musk helped start the emblematic firm of the current AI boom, in part to prevent Google from winning, but then, after trying to take control himself, got outmaneuvered and pushed out and hasn't been able to catch up using either Tesla or xAI. Amodei believes he might have a chance to beat his old boss. Musk sees a chance to put more pressure on a nemesis whom he's trying to thwart in multiple other ways. Whatever differences they have about the development of AI, they're united in one goal: to make sure Sam Altman doesn't end with more power than he already has.

Anthropic adding computing capacity from Musk's SpaceX

Elon Musk's SpaceX has signed a deal to provide computing capability for Anthropic as the demand ramps up for the artificial intelligence firm's products. In an announcement Wednesday, the companies said Musk's firm will allow Anthropic to use all of the compute power through its Colossus 1 data center, which houses over 220,000 Nvidia GPUs. The computing resources will improve capacity for users of Anthropic's Claude Pro and Claude Max, both of which saw a spike in downloads over the past year. "The cluster delivers extreme parallel performance for large language models, multimodal system, scientific simulation, and generative AI at frontier scale," SpaceX, which recently acquired Musk's AI firm xAI and is now called SpaceXAI, said in a statement. Anthropic noted it is also interested in partnering with SpaceXAI to "develop multiple gigawatts of orbital AI compute capacity." The agreement between the two leading technology companies came as a surprise to some in the technology community, given Musk's previous criticisms of Anthropic and its leadership. Just three months ago, Musk wrote in an X post that Anthropic's AI model "hates Whites & Asians, especially Chinese, heterosexuals and men." "This is misanthropic and evil," Musk added. "Fix it. Frankly, I don't think there is anything you can do to escape the inevitable irony of Anthropic ending up being Misanthropic. You were doomed to this fate when you chose your name." Explaining his apparent shift in attitude towards Anthropic, Musk said Wednesday he spent time with senior members on Anthropic's team to "understand what they do to ensure Claude is good for humanity and was impressed." Musk said everyone was "highly competent" and "cared a great deal about doing the right thing," adding, "No one set off my evil detector. So long as they engage in critical self-examination, Claude will probably be good." "After that, I was ok leasing Colossus 1 to Anthropic, as SpaceXAI had already moved training to Colossus 2," he added. Anthropic also said it is increasing usage limits for certain subscribers. Changes include doubling Claude Code's five-hour rate limits for certain plans, and raising API limits for Claude Opus models.

Anthropic just doubled limits for Claude plans, and it could transform how you work

Summary Claude Pro/Max hourly API limits doubled from 5 to 10 for Code and API users. Peak-hour throttling removed for Pro and Max -- consistent access anytime. Access to Colossus 1 brings 220k+ GPUs and faster, more reliable responses across apps. Anthropic has announced that, effective today, a massive value upgrade for all Claude Pro and Max subscribers is on the way, thanks to its new partnership with SpaceX. This new partnership will substantially increase its compute capacity, which means that Anthropic is increasing usage limits for Claude Code and the Claude API. Here is everything you need to know about Anthropic's latest move and how it changes your daily workflow. Related Claude can now design your slide decks -- and a whole lot more Claude Design can make anyone a graphic designer Posts By Dave Schafer Higher usage limits for power users The first change is a major one: Claude Code's hourly API rate limits for Pro, Max, Team, and seat-based Enterprise plans will be doubled, from 5 to 10. This is a huge increase in how often you can use the chatbot, making it perfect for developers and anyone working on technical tasks. In the past, hitting a "usage wall" was a common frustration for anyone working on long coding projects. Now, with Claude, you can effectively do twice the work in the same five-hour window. Perfect for a full 8-hour workday! The end of "peak hour" restrictions One of the most annoying issues AI users run into is throttling when servers are busy. This usually happens during peak hours -- typically between 9am and 3pm. Previously, Claude Pro and Max users might have seen their message limits restricted during peak hours to prevent the system from crashing. Now, that's a thing of the past. As part of this update, Anthropic is removing peak-hour limit reductions for Pro and Max accounts. Monday morning chaos or a late-night study session, your access to Claude will remain consistent. This reliability is a key factor when choosing between Claude and ChatGPT, as consistent uptime is vital for professional workflows. Faster response times This landmark deal with SpaceX means that Claude can use the full computing capacity at the Colossus 1 data center. This means that more than 220,000 NVIDIA GPUs will be switched online within the next month. Simply put, this means faster response times, meaning you get answers generated quicker, and more complex instructions delivered without lag. This will impact third-party apps as well -- if anything is powered by Claude, you will likely see an improvement in performance and availability. Subscribe for deeper newsletter coverage of AI platform shifts Get smarter about AI platform changes -- subscribe to the newsletter for focused coverage and analysis of developments like Anthropic's SpaceX partnership and other product and infrastructure shifts across the AI ecosystem. Get Updates By subscribing, you agree to receive newsletter and marketing emails, and accept our Terms of Use and Privacy Policy. You can unsubscribe anytime. If you've been on the fence about a Claude subscription, the value proposition just doubled. For now, there's no price increase on the horizon. Will this get you to make the switch?

Anthropic and SpaceX Just Announced a Colossal Deal to Supercharge Claude AI

Anthropic has announced a surprising partnership with SpaceX, in which the Claude creator will use the entirety of Colossus 1, the Elon Musk-founded company's massive data center in Memphis, Tennessee. Anthropic also said that it has "expressed interest in partnering with SpaceX to develop multiple gigawatts of orbital AI compute capacity." The announcement came during Anthropic's second-annual "Code with Claude" event for software developers. Over the past few months, many paid Claude subscribers have complained that they can only use the AI for a few tasks before being informed that they've reached a temporary usage limit (also called a rate limit) and have to either wait for a few hours until their usage refreshes, or pay extra in order to continue working with the AI platform. Using the new compute capacity, Anthropic says it will be able to double rate limits for paid Claude subscribers on Claude Code, the company's mega-popular AI coding platform. The company is also removing a reduction to rate limits that occurred during the platform's peak hours of usage, and is "considerably" increasing rate limits for usage of its Claude Opus models on the API. In dual statements, the two companies confirmed that Anthropic will now use all of the compute capacity within Colossus, giving the company access to over 220,000 Nvidia GPUs. Anthropic has been signing deals with organizations like Amazon, Google, Nvidia, and Microsoft in order to get access to more compute capacity, but the capacity from those deals isn't expected to start coming online until late 2026 or early 2027. The SpaceX deal immediately gives Anthropic a significant boost to the amount of AI it can offer to its monthly subscribers. On X, Anthropic cofounder Tom Brown said that the company is "going to need to move a lot of atoms in order to keep up with AI demand, and there's nobody better at quickly moving atoms (on or off planet Earth)." Musk replied to the post in agreement, and wrote that last week, he spent "a lot of time" with senior members of the Anthropic team in order to "understand what they do to ensure Claude is good for humanity." Musk wrote that he came away from those meetings impressed by the Anthropic team, and that "no one set off my evil detector." Musk went on to say that the Anthropic team he met was "highly competent and cared a great deal about doing the right thing," and that "So long as they engage in critical self-examination, Claude will probably be good." With this in mind, Musk said he was comfortable leasing Colossus 1 to Anthropic, as xAI had already transitioned to Colossus 2, another data center, for training future versions of Grok. Although, he said in another X post, his company will "reserve the right to reclaim the compute if their AI engages in actions that harm humanity." Anthropic and SpaceX may seem like strange bedfellows, because Musk has been critical of Anthropic, referring to the company as "misanthropic" and writing that "winning was never in the set of possible outcomes for Anthropic." Musk is also a fervent support of President Donald Trump, whose Department of Defense is currently engaged in a drawn-out legal battle with the Claude creator. The super-early-rate deadline for the 2026 Inc. Power Partner Awards is Friday, May 29, at 11:59 PT. Apply now.

Anthropic Is Partnering With SpaceX to Give Users Higher Rate Limits

Anthropic is increasing API rate limits for Claude Opus models Anthropic, the San Francisco-based artificial intelligence (AI) startup, announced a partnership with Elon Musk's SpaceX on Wednesday. As part of the partnership, the Claude maker will get to access more than 300 megawatts of processing power, significantly boosting its existing compute capacity. As a result of this and other collaborations, Anthropic has also announced that it is doubling the five-hour rate limit for Claude Code, removing the peak hour limit reduction, and increasing application programming interface (API) rate limits for Claude Opus models. Anthropic Partners With Elon Musk's SpaceX In a newsroom post, Anthropic announced its partnership with SpaceX. With this deal, the Claude maker will get to use all of the compute capacity at the spacetech firm's Colossus 1 data centre, which is more than 300 megawatts. The additional resource will be accessible to Anthropic within the month. "This additional capacity will directly improve capacity for Claude Pro and Claude Max subscribers," said the company. Notably, Colossus 1 is an AI training-focused data centre located in Memphis, Tennessee, in the US. It was developed by xAI in a record 122 days and has been operational since July 2024. It houses more than 2,20,000 Nvidia H100 GPUs. Financial details of the deal were not disclosed. With the increased compute capacity, Anthropic is now offering paid subscribers higher rate limits. Claude Code's five-hour rate limits for Pro, Max, Team, and seat-based Enterprise plans have now been doubled. Additionally, the peak hours limit reduction on Claude Code for Pro and Max accounts has also been removed. Do note that the company has not announced increasing the weekly quota, so that likely remains unchanged. Apart from this, the AI startup is also raising its API rate limits for Claude Opus models. In the highest tier, maximum input tokens per minute have been increased from 20,00,000 to 100,00,000, and maximum output tokens go up from 4,00,000 to 8,00,000. Anthropic highlighted that the latest deal with SpaceX joins its other compute partnerships. The Claude maker has a five-gigawatt agreement with Amazon, a five-gigawatt deal with Google and Broadcom, which will start in 2027, and a collaboration with Microsoft and Nvidia that includes $30 billion of Azure capacity.

SpaceX to give Anthropic access to its massive AI supercomputer - The Economic Times

SpaceX has inked a deal to grant Anthropic access to its Colossus 1 AI supercomputer. This collaboration aims to enhance computing power for Anthropic's Claude Pro and Claude Max AI assistants. Furthermore, Anthropic is exploring a partnership with SpaceX to develop orbital AI computing capacity.Elon Musk's SpaceX said on Wednesday it has signed a deal ⁠to ⁠give Anthropic access to Colossus 1, a massive AI supercomputer, bringing together two of the most prominent players in ⁠the artificial intelligence race. Anthropic plans to use ⁠the additional computing power to boost capacity for subscribers of its Claude Pro and Claude Max AI assistants, SpaceX said in a post on its website. Anthropic has also expressed interest ⁠in working with SpaceX to develop multiple gigawatts of orbital AI computing capacity, the rocket company added.

Why Elon Musk Just Leased 220,000 GPUs to Anthropic

The collaboration between SpaceX and Anthropic marks a significant turning point in the AI industry, driven by the increasing demand for computational resources. By leasing the Colossus 1 supercomputer, equipped with over 220,000 Nvidia GPUs and a 300-megawatt energy capacity, SpaceX has provided Anthropic with the infrastructure needed to scale its operations and address longstanding limitations. Matthew Berman examines how this partnership not only enhances Anthropic's ability to deliver AI services but also reflects broader trends in resource allocation and strategic decision-making within the tech sector. Explore how this partnership directly impacts developers and businesses, from expanded API rate limits to reduced interruptions caused by resource shortages. Gain insight into the implications for Anthropic's Claude models, the competitive dynamics between industry leaders and the role of energy efficiency in sustaining future AI growth. This overview offers a detailed breakdown of how these developments are reshaping access to AI capabilities and the strategies driving the industry forward. SpaceX's Colossus 1 supercomputer, equipped with over 220,000 Nvidia GPUs and a 300-megawatt energy capacity, now powers Anthropic's AI operations. This significant boost in computational resources has enabled Anthropic to double the usage limits for its Claude models and API rate limits, directly addressing user concerns about restrictive quotas. For developers, businesses and end-users, this partnership delivers tangible benefits: This collaboration underscores how strategic resource allocation can directly impact the quality and accessibility of AI services. Anthropic has historically adopted a cautious approach to acquiring GPUs, which has limited its ability to meet the growing demand for its AI services. This conservative strategy created bottlenecks, particularly as the company sought to scale its operations to support larger and more complex AI models. To address these challenges, Anthropic has forged partnerships with major players such as Amazon, Google and now SpaceX. These alliances are designed to secure the computational power necessary for training and deploying advanced AI systems. For users, this strategic shift means access to a more robust and reliable AI ecosystem. By overcoming resource constraints, Anthropic can focus on delivering consistent and high-quality services, reducing the likelihood of disruptions and delays. Explore further guides and articles from our vast library that you may find relevant to your interests in Anthropic. Elon Musk's role in this partnership is particularly intriguing. Despite his previous criticisms of Anthropic and his rivalry with OpenAI, Musk's decision to lease SpaceX's compute resources to Anthropic reflects a pragmatic and strategic move. This collaboration allows Musk to: This decision highlights how competitive pressures and market opportunities can drive unexpected alliances, reshaping the dynamics of the AI industry. Musk's AI company, XAI, has struggled to fully use its extensive compute resources, creating an opportunity to lease excess capacity to Anthropic. This arrangement benefits both parties: Anthropic gains the computational power it urgently needs, while XAI secures additional revenue to fund its ongoing model development efforts. For the broader AI industry, this collaboration emphasizes the importance of optimizing resource allocation. Companies that can effectively manage and monetize their infrastructure are better positioned to remain competitive in an environment where computational power is a critical asset. SpaceX's recent partnership with Cursor, another AI company, introduces questions about how its compute resources will be distributed between Cursor and Anthropic. Both companies rely on SpaceX's infrastructure for training and deploying their models and the allocation of these resources will likely influence their respective growth trajectories. For developers and businesses, this underscores the importance of securing reliable and scalable compute access. As competition for resources intensifies, companies must prioritize partnerships and strategies that ensure consistent and uninterrupted access to the infrastructure they need. The demand for AI compute resources continues to outpace supply, elevating the value of infrastructure like Colossus 1 and benefiting hardware manufacturers such as Nvidia. However, as AI models grow more complex and accessible, energy production is emerging as a critical bottleneck. The energy-intensive nature of AI operations highlights the need for innovation in energy-efficient computing. For users and businesses, this means the future of AI will depend not only on advancements in hardware but also on breakthroughs in energy efficiency. Companies that can address these dual challenges will likely lead the next phase of AI development, shaping the industry's trajectory in the years to come. Anthropic has faced criticism for its lack of transparency and restrictive quota policies, which have frustrated many users. By expanding its compute capacity through the SpaceX partnership, the company has an opportunity to address these concerns and rebuild trust with its user base. For users, this could result in: This renewed focus on transparency and user engagement could strengthen Anthropic's position in the competitive AI market. Musk's decision to support Anthropic, despite his reservations, reflects the complex strategic rivalries shaping the AI industry. By aligning with Anthropic, Musk positions himself as a key player in the ongoing competition with OpenAI. This partnership illustrates how alliances can shift in response to evolving market conditions, with leaders adapting their strategies to maintain influence and competitiveness. For the AI industry, this collaboration serves as a reminder of the importance of flexibility and strategic foresight. As the landscape continues to evolve, companies that can navigate these dynamics effectively will be best positioned to drive innovation and shape the future of AI. Disclosure: Some of our articles include affiliate links. If you buy something through one of these links, Geeky Gadgets may earn an affiliate commission. Learn about our Disclosure Policy.

Elon Musk Calls Nvidia GB300 'The Best AI Computer' As SpaceX And Anthropic Strike Deal - NVIDIA (NASDAQ

Anthropic Expands Claude AI With SpaceX Data Center Deal On Wednesday, Anthropic announced on X that it has entered into a partnership with SpaceX to use the full compute capacity of Colossus 1, the company's data center in Memphis, Tennessee. The agreement is expected to add more than 300 megawatts of compute capacity, equivalent to over 220,000 Nvidia GPUs, within a month. Nvidia Highlights AI Infrastructure Boom Nvidia celebrated the partnership in its own post on X, calling it a milestone for AI infrastructure. "Two frontier labs. One accelerated computing platform," Nvidia wrote. "The future of AI runs on NVIDIA." Musk later amplified Nvidia's message, posting: "The GB300 is the best AI computer." What Is Nvidia's DGX GB300 Nvidia's DGX GB300 is the company's latest large-scale AI computing platform built around its Grace Blackwell Ultra architecture. The liquid-cooled system is designed for modern AI data centers and can scale to thousands of interconnected systems for training and running advanced AI models. Price Action: NVDA shares closed Wednesday up 5.68% at $207.66 and slipped 0.20% to $207.26 in after-hours trading, according to Benzinga Pro. According to Benzinga Edge Rankings, NVDA is positioned in the 98th percentile for Growth, highlighting a strong trend across the short, medium and long-term. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo: Frederic Legrand - COMEO on Shutterstock.com Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

SpaceXAI Gives Anthropic A Fresh Injection of 220,000 NVIDIA GPUs While Also Planning on Multi-GW "Orbital" AI Compute Capacity

SpaceXAI has announced that it will provide Anthropic access to its Colossus 1 supercomputer with 220,000 NVIDIA GPUs and is also planning orbital compute clusters. Anthropic is starving for more compute for its AI requirements. The company is expanding its capabilities at a scale like none other, while reportedly making in-house chips & working with some big chipmakers. The company also announced a partnership with Amazon for a 6GW Trainium chip capacity for its Claude AI models, among several other partnerships. Today, SpaceXAI has announced that it will provide Anthropic with access to its Colossus 1 super cluster in a new partnership that aims to provide the AI firm with lots of AI compute capabilities in both land and space. The Colossus 1 supercomputer itself is a hefty piece of infrastructure, featuring over 220,000 NVIDIA GPUs in the form of H100s, H200s, and the latest GB200s "Blackwell". SpaceXAI states that this super-compute offers "unprecedented scale for AI training, fine-tuning, and high-performance computing workloads". Given its huge compute capabilities, the system is perfect for Anthropic, which will now be using the resources to improve its Claude model, offering higher capacity for Claude Pro and Claude Max subscriptions. Recently, reports have highlighted that xAI is only utilizing just 11% of its installed AI compute resources due to unoptimized software stacks. This means that xAI has lots of headroom available for rental, & that is where Anthropic comes in. At the same time, Anthropic has also expressed its interest in partnering with SpaceXAI to deploy multi-Gigawatts of compute capacity in orbit. That will be a huge undertaking, but SpaceXAI believes that an orbital compute installation will address some of the major bottlenecks of terrestrial-based systems such as Power, Land, and Cooling. SpaceX is the only organization with the launch cadence, mass-to-orbit economics, and constellation operations experience to make orbital compute a near-term engineering program rather than a research concept. If engineering challenges can be overcome, space-based compute offers near-limitless sustainable power with less impact on Earth. SpaceXAI With what SpaceX has shown so far, an orbital compute ecosystem doesn't sound too far-fetched; the only question is, how soon are we going to see it in action?

SpaceXAI And Anthropic Just Made A Deal That Could Push AI Beyond Earth

SpaceXAI has struck a partnership agreement with Anthropic to use all of the compute capacity at SpaceX's data center Colossus 1 in Memphis, Tennessee. "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," Claude wrote in a post on X. The partnership will give Anthropic more than 300 megawatts of additional capacity (over 220,000 NVIDIA GPUs) to deploy within the month. Anthropic also highlighted three changes the company is making in an effort to "improve the experience" of Claude for its users. First, the company is doubling Claude Code's five-hour rate limits for Pro, Max, Team, and seat-based Enterprise plans. Next, Anthropic is removing the peak hours limit reduction on Claude Code for Pro and Max accounts. Additionally, the company is raising its API rate limits considerably for Claude Opus models. Anthropic has recently been expanding its computing capacity through multiple new agreements, including a multi-billion dollar deal with Amazon. The company also signed a 5 GW agreement with Google and Broadcom that is expected to be available next year. "We train and run Claude on a range of AI hardware -- AWS Trainium, Google TPUs, and NVIDIA GPUs -- and continue to explore opportunities to bring additional capacity online. As part of this agreement, we have also expressed interest in partnering with SpaceX to develop multiple gigawatts of orbital AI compute capacity," the company stated in the announcement. Anthropic added that they are "very intentional" about where they will add capacity, looking to partner with "democratic countries whose legal and regulatory frameworks support investments of this scale, and where the supply chain on which our compute depends -- hardware, networking, and facilities -- will be secure," the company said. xAI operates two facilities in the area known as Colossus and Colossus II, with Colossus II described as a roughly 1 million-square-foot site in Southaven. The lawsuit claims xAI installed and used as many as 27 gas turbines at the Southaven site, describing each unit as comparable in size to a bus. It also alleges the Southaven facility could produce more than 1,700 tons of nitrogen oxides annually, along with other toxic chemicals such as formaldehyde. Photo: Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

SpaceXAI partners with Anthropic for Colossus 1 supercomputer to scale Claude AI

Anthropic has announced a compute partnership with SpaceXAI to access the Colossus 1 AI supercomputer. The agreement increases compute capacity for Claude services, updates usage limits, and supports future exploration of large-scale AI infrastructure, including orbital compute development. SpaceXAI's Colossus 1 is one of the world's largest and fastest-deployed AI supercomputers, built to support large-scale AI workloads. Key specifications include: The system supports workloads such as large language models, multimodal systems, scientific simulations, and generative AI at scale. The expanded compute capacity enables changes across Anthropic's Claude platform. Anthropic has signed an agreement with SpaceXAI to use the full capacity of the Colossus 1 data center. This provides: The capacity will directly support scaling for Claude Pro and Claude Max users. Anthropic and SpaceXAI have expressed interest in developing multi-gigawatt orbital AI compute systems. This is driven by: The concept explores space-based compute as a potential long-term infrastructure model, with reduced environmental impact on Earth. SpaceX is identified as a key enabler due to its launch operations, orbital deployment experience, and constellation infrastructure capabilities. This agreement is part of Anthropic's wider infrastructure expansion across multiple providers: Anthropic operates across multiple compute systems including AWS Trainium, Google TPUs, and NVIDIA GPUs. Anthropic is expanding infrastructure globally to support enterprise and regulated-sector requirements. Focus areas include: Anthropic has stated it will cover any consumer electricity price increases in the United States caused by its data centers. The company is also exploring extending this approach to other regions and reinvesting in local communities hosting infrastructure. Anthropic will gain access to Colossus 1 compute capacity within one month of the agreement.

Elon Musk's SpaceX joins forces with Anthropic in AI deal ahead of blockbuster IPO

Elon Musk's SpaceX will give Anthropic access to its massive Colossus 1 artificial intelligence data center, bringing together two of the most prominent players in the artificial intelligence race. Under the deal announced on Wednesday, Anthropic will use the full computing power of SpaceXAI's Memphis, Tenn., facility to boost capacity for its Claude Pro and Claude Max AI assistants and raise usage limits for subscribers. The deal gives Musk's IPO-bound SpaceX a marquee customer as it looks to sell investors on its AI ambitions while helping Anthropic ease capacity constraints following surging demand for products such as its AI coding tool, Claude Code. Colossus 1 is one of the world's largest AI data centers, housing more than 220,000 Nvidia processors, including H100, H200 and next-generation GB200 accelerators. Anthropic has also expressed interest in working with SpaceX to develop multiple gigawatts of space-based data centers - one of Musk's key goals and a major driver behind the SpaceX's initial public offering as the endeavor is expected to be highly capital intensive. The announcements were made as Anthropic held a developer day in San Francisco where it touted a new feature for its Claude AI, which it calls "dreaming." Available as a research preview, "dreaming" comes with its software for managing agents, or AI programs that perform tasks with little human involvement. The feature's goal is self-improvement. It can review agents' work in between sessions, unearth patterns, and update files that store user preferences and other context, Anthropic said. The new feature is part of Anthropic's efforts to win business customers, on the heels of an uptick in popularity for its AI-powered coding agent. On Tuesday, the startup unveiled 10 financially focused AI agents at an event in New York, in which it said the tech sector represented its largest source of enterprise revenue, followed by financial institutions. Moves by the Google- and Amazon-backed startup have hammered software-as-a-service (SaaS) stocks as the market expects AI to disrupt legacy businesses. Anthropic announced wider availability for other features as well, such as one for its AI agent to break down and delegate tasks to other, specialist agents.

Anthropic partners with SpaceX to bolster AI capabilities

The deal is expected to enable Anthropic to enhance performance for subscribers of its Claude Pro and Claude Max offerings. This alliance comes despite a backdrop of public tension between Anthropic and Elon Musk, owner of SpaceX and founder of xAI. In recent months, Musk has ramped up his criticism of Anthropic, particularly on AI regulation issues, going so far as to accuse the company of "hating Western civilization." Concurrently, xAI is pursuing the rapid expansion of its Memphis infrastructure to compete with OpenAI, Google, and Anthropic in the AI market. The Colossus 1 center is currently its most significant computing site. However, the project faces local criticism related to the use of natural gas turbines, which are accused of worsening air pollution in the region. Furthermore, the startup founded in 2021 by former OpenAI researchers and executives is reportedly in talks with investors for a funding round that could value the company at up to $900bn.

Anthropic signs compute deal with SpaceX: How it is beneficial for Claude users

Anthropic is doubling Claude Code's five-hour usage limits for users on Pro, Max, Team and seat-based Enterprise plans. AI startup Anthropic has announced a new compute partnership with Elon Musk's SpaceX. As part of the agreement, Anthropic will gain access to the entire compute capacity of SpaceX's Colossus 1 data center. According to the company, this provides access to more than 300 megawatts of new capacity (over 220,000 NVIDIA GPUs). For regular users, this mainly means better performance and fewer usage restrictions while using Claude. Anthropic has already started rolling out several changes for paid subscribers. The company says it is doubling Claude Code's five-hour usage limits for users on Pro, Max, Team and seat-based Enterprise plans. Earlier, some users experienced reduced access during peak hours because of high demand, but Anthropic says it is now removing those peak-hour restrictions for Pro and Max subscribers. Anthropic is also increasing API rate limits for Claude Opus models. Also read: Former OpenAI CTO Mira Murati testifies against Sam Altman in Elon Musk lawsuit: Here is what she said 'We train and run Claude on a range of AI hardware- AWS Trainium, Google TPUs, and NVIDIA GPUs- and continue to explore opportunities to bring additional capacity online,' Anthropic said in a blogpost. Interestingly, Anthropic also revealed that it is exploring a potential partnership with SpaceX to develop multiple gigawatts of orbital AI compute capacity. Also read: Apple agrees to pay USD 250 million to iPhone buyers over AI claims: Who can claim In another blogpost, xAI said, 'The compute required to train and operate the next generation of these systems is outpacing what terrestrial power, land, and cooling can deliver on the timelines that matter.' 'SpaceX is the only organisation with the launch cadence, mass-to-orbit economics, and constellation operations experience to make orbital compute a near-term engineering program rather than a research concept.' Also read: OpenAI partners with Nvidia, Microsoft and others to build MRC: What it is