Musk's SpaceX strikes data center deal with Anthropic

AI startup Anthropic has forged a significant computing partnership with Elon Musk's SpaceX, gaining full access to the Colossus 1 data center located in Memphis, Tennessee. This agreement is critical for Anthropic, the developer of the Claude AI models, as it seeks to accommodate the rapidly increasing demand for its services. The deal encompasses more than 300 megawatts of power and the immediate deployment of over 220,000 Nvidia AI chips, benefiting subscribers to Anthropic's premium Claude plans. Coinciding with this partnership, Anthropic announced it would double the usage limits for its AI-powered coding assistant, Claude Code, and remove previous access restrictions during peak times. The Colossus facility itself has been a source of controversy. Originally constructed for Musk's AI venture, xAI (which Musk announced would be dissolved into SpaceX and rebranded as SpaceXAI), it utilizes dozens of natural gas turbines for power. xAI had claimed temporary use exempted it from federal permits, a stance that drew protests from civil rights groups who raised concerns about exacerbated air pollution in the Memphis region.