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.<\/p>\n
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.<\/p>\n
The agreement gives Anthropic access to more than 300 megawatts of capacity, backed by over 220,000 Nvidia AI chips, within one month.<\/p>\n
The company said the additional capacity would directly benefit subscribers to its Claude Pro and Claude Max plans.<\/p>\n
Anthropic also announced it was immediately letting users do more with its technology.\u00a0<\/p>\n
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.<\/p>\n
The SpaceX deal marks a surprising partnership between two companies whose leaders have been publicly at odds.<\/p>\n
Musk wrote in February that Anthropic “hates Western Civilization” and questioned whether there was a “more hypocritical company than Anthropic.”\u00a0<\/p>\n
Anthropic CEO Dario Amodei has rankled Musk and other Silicon Valley insiders with his public warnings about the dangers of AI.<\/p>\n
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.<\/p>\n
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.”<\/p>\n
“Everyone I met was highly competent and cared a great deal about doing the right thing,” he wrote.<\/p>\n
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.<\/p>\n
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.<\/p>\n
The Colossus facility in Memphis has been a source of controversy.<\/p>\n
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.<\/p>\n
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.\u00a0<\/p>\n
These include megadeals with Amazon, Google and Broadcom, Microsoft and Nvidia, and an infrastructure investment with Fluidstack.<\/p>\n
– AI battle –<\/p>\n
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.<\/p>\n
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.<\/p>\n
OpenAI, meanwhile, announced a partnership Tuesday with global auditing giant PwC to support its financial operations.<\/p>\n
But the race to deploy AI agents is running headlong into a scramble for the chips and energy needed to power them.<\/p>\n
Data center construction in the United States, despite moving at an accelerated pace, has struggled to keep up.\u00a0<\/p>\n
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.<\/p>\n
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