AI for Business

Anthropic Taps SpaceX Data Centers for AI Computing Power, Despite Musk’s Harsh Criticism

Anthropic, the AI company behind the Claude chatbot, has struck a deal with Elon Musk’s SpaceX to use the full computing capacity of the Colossus 1 data center in Memphis, Tennessee. The agreement...

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Anthropic, the AI company behind the Claude chatbot, has struck a deal with Elon Musk’s SpaceX to use the full computing capacity of the Colossus 1 data center in Memphis, Tennessee. The agreement gives Anthropic access to over 300 megawatts of compute power, with the company also expressing interest in working with SpaceX to develop multiple gigawatts of computing capacity in orbit.

The partnership is notable given Musk’s public attacks on Anthropic. Musk, who runs the competing AI company xAI (a separate entity from SpaceX, though both are under his control), has posted on X that Anthropic is “doomed to become the opposite of its name” and asked if there is a “more hypocritical company than Anthropic.” In February, he wrote that “Anthropic hates Western Civilization.”

Anthropic said the deal will directly improve performance for paid subscribers of Claude Pro and Claude Max. The company, founded in 2021 by former OpenAI executives and researchers, is currently valued at around $18 billion, according to recent investor discussions reported by CNBC. It is best known for its Claude family of AI models.

The arrangement also comes amid a broader rift between Anthropic and the U.S. government. In March, the Pentagon designated the company a supply chain risk, barring it from military contracts after the two sides failed to agree on model usage terms. Anthropic has sued the Trump administration to reverse that decision, and the litigation continues.

Meanwhile, xAI has been rapidly expanding its data infrastructure around Memphis, including the Colossus facility. The buildout has drawn local opposition after xAI and its subsidiary MZX Tech installed dozens of natural gas-burning turbines without federal permits, claiming temporary use. Residents and activists say the turbines worsened air pollution in the area.

[Sources: CNBC, The Information, Memphis Commercial Appeal]

Source: CNBC

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