Elon Musk’s data center to run ‘Cloud AI’, adding 300 megawatts of computing capacity
Elon Musk’s data center to run ‘Cloud AI’, adding 300 megawatts of computing capacity
Artificial intelligence (AI) startup Anthropic has signed a new agreement with Elon Musk-owned SpaceX to expand its computing capacity. According to the agreement, made public on Wednesday, Anthropic will now use Musk’s data centers to run its AI model ‘Cloud.’
Under the agreement, 300 megawatts of new capacity will be made available to Anthropic within the next month through SpaceX’s ‘Colossus 1’ facility in the US state of Tennessee. The data center is equipped with more than 220,000 Nvidia processors, which were initially built for Musk’s own AI company XAI’s Grok model.
The company was facing a shortage of computing capacity after demand for products including Anthropic’s AI coding tool ‘Cloud Code’ soared. The agreement is expected to go a long way in solving that problem. The company has also expressed interest in collaborating with SpaceX to develop an orbital data center in space in the future.
Musk, who has been a strong critic of Anthropic in the past, has seen the latest move as meaningful. “I was impressed by their work on how the cloud is good for humanity,” Musk wrote on the social network X. However, he warned that if Anthropic’s AI did something that harmed humanity, he would kick it out of his data center.
The deal was announced on the same day as Anthropic’s first developer conference in San Francisco. With the additional capacity, the company has doubled the usage limit of cloud code and removed the ‘peak-hour’ restriction for Pro and Max users.
At the same event, Anthropic also unveiled a new feature called ‘Dreaming.’ This feature will help the AI system learn new things by reviewing user preferences and past tasks.
Elon Musk's decision to rent computing power to his competitors has been seen as the beginning of a new business relationship in the AI industry. Musk's company had previously made a similar deal with another AI startup, Cursor.
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