Anthropic and Elon Musk Strike Unexpected Data Center Deal

Anthropic and Elon Musk Strike Unexpected Data Center Deal

Anthropic and Elon Musk Strike Unexpected Data Center Deal

https://www.cnet.com/tech/services-and-software/elon-musk-and-anthropic-on-good-enough-terms-to-sign-a-major-data-center-deal/

Publish Date: 2026-05-07 13:54:00

Source Domain: www.cnet.com

  • Elon Musk’s company SpaceX has signed a deal with AI company Anthropic to provide access to over 200,000 Nvidia GPUs at its Colossus 1 supercomputer facility in Tennessee.
  • This partnership will enhance Anthropic’s capacity for its AI models, specifically for users on Claude Pro and Max plans, and explore potential for orbital AI compute.
  • Anthropic has raised usage limits, doubling limits on its Claude Code for users on Pro, Max, Team, and Enterprise plans, removed peak-hour restrictions for Pro and Max accounts, and increased API limits for Claude Opus models.
  • Anthropic has ongoing data center agreements with major tech companies Amazon, Google, and Microsoft and intends to expand internationally.
  • The company has committed to covering energy cost increases driven by its data center activities, though critics question the feasibility of this pledge.
  • The deal, despite Musk’s past allegations against Anthropic, underscores the intense competition among AI companies for essential data center resources.
  • Some communities, including the NAACP, have criticized the data center’s potential environmental and health impacts on historically Black communities.