Archive · 28 Jul 2026
Anthropic Pays Musk $40 Billion for AI Compute
Anthropic, an AI company known for its focus on safety, has made a big deal with Elon Musk's companies to use his powerful computers for training AI models.
They are paying Musk $40 billion over several years to use a huge data center called Colossus 1.
This deal helps Anthropic make better AI tools faster.
There's also a special rule that says Musk can take back the computers if Anthropic's AI does something harmful.
Musk used to criticize Anthropic, but now he says the people there are competent and care about doing the right thing.
This deal is important because it shows how big companies are working together to advance AI technology.
Anthropic is paying xAI/SpaceX $40 billion for exclusive use of Colossus 1 data center through May 2029.
The deal includes more than 220,000 Nvidia processors and 300 megawatts of power.
Anthropic has used the additional compute to double Claude Code's usage limits and lift peak-hour caps.
A clause in the deal allows SpaceX to reclaim the compute if Anthropic's models harm humanity.
Musk has publicly praised Anthropic's team after the deal, despite previously criticizing the company.
- Who
- Anthropic and Elon Musk's xAI/SpaceX
- What
- A $40 billion deal for AI compute infrastructure
- When
- Through May 2029
- Where
- Memphis, Tennessee (Colossus 1 data center)
- Why
- Anthropic needed immediate access to large-scale compute resources for AI training and development.
Anthropic's Perspective
Elon Musk's Perspective
Safety and Governance
Anthropic's Perspective
Anthropic emphasizes safety and governance in AI development, aiming to be a responsible alternative to other AI labs.
Elon Musk's Perspective
Musk has expressed skepticism about Anthropic's safety commitments, previously calling the company 'woke,' 'misanthropic,' and 'evil.'
Financial Dependence
Anthropic's Perspective
Anthropic is financially dependent on Musk's infrastructure, which could pose a risk if the deal terms are not met.
Elon Musk's Perspective
Musk benefits financially from the deal, gaining a significant revenue stream while maintaining control over the infrastructure.
- Deal Value
- $40 billion
- Duration
- Through May 2029
- Compute Capacity
- More than 220,000 Nvidia processors
- Power Consumption
- 300 megawatts
- Monthly Payment
- $1.25 billion
- Safety Clause
- SpaceX can reclaim compute if Anthropic's models harm humanity