Elon Musk Leases SpaceX Data Center to Anthropic as Grok Usage Lags, Signaling AI Market Shifts

Elon Musk Leases SpaceX’s Colossus 1 Data Center to Anthropic

Elon Musk’s xAI is leasing the entire computing capacity of SpaceX’s Colossus 1 data center in Memphis to Anthropic, a move that highlights the underutilization of Grok models compared to competitors. The agreement provides Anthropic with access to over 300 megawatts of computing power, equivalent to more than 220,000 NVIDIA GPUs.

Why xAI Can Afford to Sell Off Compute Capacity

While other AI companies scramble to secure computing resources, xAI’s Grok models are reportedly being used so infrequently that the company can lease out entire data centers. SpaceX, which owns xAI, has already shifted its training workloads to the newer Colossus 2 facility, freeing up Colossus 1 for Anthropic’s use.

Anthropic’s Plans for the New Capacity

Anthropic intends to use the Colossus 1 data center primarily for inference, the real-time processing required to respond to user prompts. The additional capacity will support its Claude Pro ($20/month) and Claude Max ($100–$200/month) subscribers.

Musk’s Stamp of Approval for Anthropic

Musk publicly endorsed Anthropic after meeting with its senior team, stating in an X post:

“By way of background for those who care, 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. Everyone I met was highly competent and cared a great deal about doing the right thing. No one set off my evil detector.”

Future Plans: Orbital AI Data Centers

Beyond Earth, Musk and SpaceX are exploring plans to develop multiple gigawatts of orbital AI compute capacity. Space-based data centers could eliminate cooling costs, though major technical challenges remain, particularly in transmitting large volumes of data between orbit and Earth.

Musk’s Strategic Move Against OpenAI

The lease to Anthropic may reflect Musk’s ongoing feud with OpenAI and its co-founder, Sam Altman. Musk has sued OpenAI, alleging that its leadership abandoned the company’s original nonprofit mission to prioritize profit-driven AGI development.

Silicon Valley’s Shifting Alliances with Trump

A recent Atlantic exposé by George Packer examines the evolving relationship between Silicon Valley and former President Donald Trump, suggesting that their alliance on AI policy may be weakening. The article highlights tensions and divergent priorities among tech leaders and political figures.

AI Coding Agents Struggle with New Benchmark

In another development, a new benchmark is proving difficult for top AI coding agents, underscoring ongoing challenges in AI performance and reliability.