Anthropic buys all compute at xAI's Colossus 1 data center, signaling shift before SpaceX IPO.

Anthropic has purchased all the compute capacity at xAI’s Colossus 1 data center in Tennessee, marking a significant partnership. This move suggests xAI is shifting from training its own AI models to renting out computing power, raising questions about its innovation and long-term growth. The deal comes as SpaceX plans to dissolve xAI as a separate entity ahead of its IPO, with xAI focusing more on enterprise AI infrastructure than consumer AI products like Grok. This shift may make xAI’s business model more stable but less attractive to investors seeking cutting-edge AI development.