xAI pivots to neocloud business with Anthropic data center deal
On Wednesday, xAI and Anthropic revealed their collaboration, with Anthropic acquiring the entire compute capacity of xAI's Colossus 1 data center, which amounts to around 300MW. This agreement, estimated to be worth billions, transitions xAI from a consumer-focused entity to a compute service provider. Elon Musk mentioned on X that xAI has shifted its training operations to Colossus 2, making the use of both centers unnecessary. This partnership comes after a drop in xAI's Grok usage due to previous image generation challenges and is positioned ahead of an IPO. Anthropic's role bolsters the credibility of SpaceX's data center. xAI was valued at $230 billion in January, while CoreWeave's valuation is below a third of that. Musk envisions orbital data centers by 2035, but xAI's software goals may face challenges.
Key facts
- xAI and Anthropic announced a partnership on Wednesday.
- Anthropic buys all compute capacity at xAI's Colossus 1 data center (300MW).
- The deal is likely worth billions of dollars.
- xAI had moved training to Colossus 2, freeing up Colossus 1.
- Grok usage has plummeted since image generation debacles earlier this year.
- xAI combined with SpaceX and is speeding toward an IPO.
- xAI valued at $230 billion in January funding round.
- CoreWeave, with comparable compute, is worth less than a third of xAI's valuation.
Entities
Institutions
- xAI
- Anthropic
- SpaceX
- Meta
- Nvidia
- CoreWeave
- TechCrunch