Anthropic, SpaceX announce compute deal that includes space development

Anthropic has announced a significant compute deal with Elon Musk's SpaceX, securing all the compute capacity at SpaceX's Colossus 1 data center located in Memphis, Tennessee. The agreement also includes Anthropic's expressed interest in collaborating with SpaceX to develop several gigawatts of compute capacity in space, aiming to enhance capacity for its Claude Pro and Claude Max subscribers. The deal comes amidst a notable shift in rhetoric from Elon Musk, who previously criticized Anthropic but recently expressed being "impressed" after meeting with their team. SpaceX, which this year merged with Musk's AI startup xAI, has been actively building out its data infrastructure, particularly around Memphis, to compete in the growing AI market. However, the Colossus 1 facility, operated by xAI and its subsidiary MZX Tech, LLC, has faced controversy. The installation and operation of dozens of natural gas-burning turbines to power the facility, which xAI claimed did not require a federal permit for temporary use, reportedly worsened air pollution in Memphis and led to persistent local protests against xAI's operations. Separately, Anthropic has been working to address infrastructure strain due to high demand for its Claude AI models, having inked several compute deals, including a multi-billion-dollar agreement with Amazon. The company is also navigating ongoing legal and governmental challenges, including a lawsuit filed against the Trump administration after the Pentagon blacklisted Anthropic from U.S. military work, citing supply chain risks.